Q1. The summarized Balance Sheet of PA Traders Ltd, for the year ended 31-3-2012, is given below: (Flakh) 210 25 185 Capital and Liabilities Equity share capital (fully paid-up) Reserves and surplus Profit and loss account Provision for taxation Sundry creditors 140 45 20 10 40 Assets Fixed asset (at cost) Less: Depreciation Current assets: Stock Debtors Cash 25 30 15 70 255 255 The following further particulars are also given for the year: (in lakh of rupees) Sales 120 Earnings before interest and tax (EBIT) 30 Net profit after tax (PAT) 20 Calculate the following for the company and explain the significance of each in one or two sentences. (i) Current ratio (ii) Liquidity ratio (iii) Stock turnover (iv) Profitability ratio (v) Debtors' turnover (vi) Profitability on funds employed (vii) Average collection period (viii) Return on equity