Question
Q1. The summarized balance sheet of C.B. Ltd. on March 31, 2022 is provided below: Liabilities Amount (Rs) Assets Amount (Rs) Equity capital 2,00,000 Fixed
Q1. The summarized balance sheet of C.B. Ltd. on March 31, 2022 is provided below:
Liabilities | Amount (Rs) | Assets | Amount (Rs) |
Equity capital | 2,00,000 | Fixed assets | 1,40,000 |
Reserves and surplus | 30,000 | Cash | 12,000 |
Sundry creditors | 70,000 | Debtors | 93,000 |
|
| Inventories | 55,000 |
| 3,00,000 |
| 3,00,000 |
Other information:
Sales 2,60,000
(-) Cost of goods sold (1,80,000)
Gross profit 80,000
(-) Administration and other expenses (62,500)
Net profit 17,500
You are required to compute the following ratios:
Current ratio
Quick ratio
Inventory turnover ratio
Debtors turnover ratio
Net profit ratio
Sales to total asset ratio
Note: Proper calculations are required in all ratios, and you can make the necessary assumptions.
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