Q1. Calculate the following:1. Sales amount2. Net profit after tax3. Receivable turnover ratio4. Current ratio5. Quick ratio6. Debt to equity ratio7. Return on equityQ2- interpret your answers in Q1 and give your analysis of the financial situation of ABC. You answer will have to be supported by your ratio calculations in Q1.

Question : ABC Company Lid (ABC) provides you the following information and balance sheet as of December 31, 2020: Balance Sheet Liabilities Amount Assets Amount Equity shares capital e Rs 200.000 475 000 100 650 Preference shares 50,000 Long term Investment 50 000 capital as Debentures 50,000 Other quick assets 185,000 Current liabilities 180,000 |Closing stock 20.000 General reserve 180,000|Preliminary expenses 10.000 POL account last year 131,750 | Account receivable 157 500 P&L account current year 55.750 347.500 947 500 Other information: Fixed assets lurover ratio was 3 limes for the year; "Net profit margin before interest and income taxes was 10 % of the opening stock sales Company is within 60% tax brackets Working days during the year were 360 days