20,00,000 20,00,000 2.10,000 1,00,000 Tax Particulars Particulars To, Cost of Goods Sold 6,00,000 By, Sales To. Operating Expenses (balancing fig) 11.90,000 To Earnings before Interest and Tax 2,10,000 20,00,000 To, Debenture Interest 10,000 By, Earnings before Interest and To, Income Tax To, Net Profit 1,00,000 2,10,000 040 3.Balance Sheet Liabilities 2 Assets Net Worth: Fixed Assets (bal. figure) ---- Share Capital: 4,00,000 Current Assets: ----Reserve and Surplus 1,00.000 5,00,000 - Cash (bal. figure) 15,000 10% Debentures 1,00,000 - Stock 40,000 Sundry Creditors 60,000 -Debtors 35,000 6,60,000 2,10,000 5,70,000 90,000 6,60,000 Preparation of Balance Sheet using Ratios Illustration 74: Based on the following information and Financial Ratios, prepare Balance Sheet the Company. Explain your workings and assumptions. Current Ratio 2.5 Turnover Ratio to Net Fixed Assets 2 Liquidity Ratio 1.5 Average Debt Collection Period 2.4Mnths Net Working Capital 36,00,000 Fixed Assets to Net Worth 0.80 Stock Tumover Ratio 5 Long Term Debt to Capital and 7/25 Ratio of Gross Profit to Sales 20% Reserves