Question
Following information are available for Aya Ltd. and the ratios that relevant to the particulars industry it belongs to. Calculate the following ratios and compare
Following information are available for Aya Ltd. and the ratios that relevant to the particulars industry it belongs to. Calculate the following ratios and compare with the competitors average below.
Use two columns for each ratio (business ratios and industry ratios) and round to 2 decimal places. You need to use of Excel formula. Aya Ltd. BALANCE SHEET AS AT 31.06.2020 Liabilities Amount (`) Assets Amount (`) Equity Share Capital 9600000 Fixed Assets 4840000 10% Debentures 1840000 Cash 1760000 Creditors 1320000 Debtors 2200000 Bills Payable 1760000 Stock 6600000 Other current Liabilities 880000 - Total 15400000 Total 15400000 STATEMENT OF PROFITABILITY FOR THE YEAR ENDING 31.06.2020 Particulars Amount (`) Amount (`) Sales 22000000 Less: Cost of goods sold - - Material 8360000 - Wages 5280000 - Factory Overhead 2596000 16236000 Gross Profit - 5764000 Less: Selling & Distribution Cost 2200000 - Administrative Cost 2456000 4656000 EBIT - 1108000 Less: Interest Charges - 184000 Earning before Tax - 924000 Less: Taxes & 50% - 462000 Net Profit (PAT) 462000 INDUSTRY STANDARDS Ratios Standards Current Assets/Current Liabilities 2.5 Sales/ debtors 8 Sales/ Stock 10 Sales/ Total Assets 2 Net Profit/ Sales 4% Net profit /Total Assets 8% Net Profit/ Net Worth 11% Total Debt/Total Assets 50%
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