Question
FINANCIAL STATEMENT ANALYSIS The details of Shouty Company are as under: Sales (40% cash sales) 15,00,000 Less: Cost of sales Gross Profit : 7,50,000 7,50,000
FINANCIAL STATEMENT ANALYSIS
| The details of Shouty Company are as under: | |||
| Sales (40% cash sales) | 15,00,000 | ||
| Less: Cost of sales | Gross Profit: | 7,50,000 | |
|
| 7,50,000 | ||
| Less: Office Exp. (including int. on debentures) 125,000 | 250,000 | ||
| Selling Exp. | 125,000 | ||
|
| Profit before Taxes: | 500,000 | |
| Less: Taxes | Net Profit: | 250,000 | |
|
|
| 250,000 | |
| Particular | Shs. | Particular |
| Shs. | ||
| Equity share capital | 2,000,000 |
| Fixed Assets | 5,500,000 |
| |
| 10% Preference share capital | 2,000,000 |
| Stock | 175,000 |
| |
| Reserves | 1,100,000 |
| Debtors | 350,000 |
| |
| 10% Debentures | 10,00,000 |
| Bills receivable | 50,000 |
| |
| Creditors | 100,000 |
| Cash | 225,000 |
| |
| Bankoverdraft | 150,000 |
| Fictitious Assets | 100,000 |
| |
| Bills payable | 45,000 |
|
|
|
|
|
| Outstanding expenses | 5,000 |
|
|
|
|
|
|
| 6,400,000 |
|
| 6,400,000 | ||
Beside the details mentioned above, the opening stock was of Shs. 325,000. Taking 360 days of the year, calculate the following ratios; also discuss the position of the company:
(1) Gross profit ratio. (2) Stock turnover ratio. (3) Operating ratio. (4) Current ratio. (5) Liquid ratio. (6) Debtors ratio. (7) Creditors ratio. (8) Proprietary ratio. (9) Rate of return on net capital employed. (10) Rate of return on equity shares.
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Authors: Derek Melber
1st Edition
0894135635, 978-0894135637
