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Find i. current ratio ii. acid test ratio iii. dept equity ratio iv. interest coverage ratio v. gross profit ratio vi. net profit ratio vii.
Find i. current ratio ii. acid test ratio iii. dept equity ratio iv. interest coverage ratio v. gross profit ratio vi. net profit ratio vii. return on total resources viii. return of capital employed ix.return on equity funds x. debtors turnover xi. stock turnover xii. total assets turnover
\begin{tabular}{|l|l|l|} \hline & Previous year (Rs) & Current year (Rs) \\ \hline Cash & 2,00,000 & 1,60,000 \\ \hline Sundry debtors & 3,20,000 & 4,00,000 \\ \hline Temporary investments & 2,00,000 & 3,20,000 \\ \hline Stock & 18,40,000 & 21,60,000 \\ \hline Prepaid expenses & 28,000 & 12,000 \\ \hline Total Current assets & 25,88,000 & 30,52,000 \\ \hline Total assets & 56,00,000 & 64,00,000 \\ \hline Current liabilities & 6,40,000 & 8,00,000 \\ \hline 10% Debentures & 16,00,000 & 16,00,000 \\ \hline Equity share capital & 20,00,000 & 20,00,000 \\ \hline Retained earnings & 4,68,000 & 8,12,000 \\ \hline \end{tabular} From the above appraise the financial position of the company from the points of view of (i) liquidity, (ii) solvency, (iii) Profitability and (iv) ActivityStep by Step Solution
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