Q13. Comparative balance sheets at the end of 2014 and 2015 of Pearl Limited appear below: Pearl Limited (Comparative Balance Sheet) ASSETS 2014 2015 Cash and Bank Balance 37,500 33,750 Marketable Securities 30,000 18,750 Accounts Receivable 240,000 247,500 Merchandise Inventory 180,000 176,250 Plant and Equipment (Net) 450,000 480,000 Total 937,500 956,250 Liabilities & shareholder's Equity Accounts Payable 112,500 150,000 Accrued Expenses 45,000 33,750 Long Term Loan 52,500 Debenture Payable (due 2020) 375,000 232,500 Ordinary Share Capital 120,000 120,000 Retained Earning 285,000 367,500 Total 937,500 956,250 Additional Information: 1. Operating Income for 2014 was Rs. 140,400 and No Dividend was declared. 2. Operating Income for 2015 is Rs187,500 and Cash dividends Rs.105,000 were declared and paid. 3. Net Income for 2014 was Rs58,125. REQUIRED: Compute the following ratios for the year 2014 and 2015. Interpretation against each ratio is required. i. Current Ratio ii. Debt Ratio iii. Equity Capital iv. Stock Turnover v. Receivable Turnover vi. Return on Capital Employed vii. Return on Assets NOTE: Sales were Rs. 600,000 and Rs. 637,500 for the year 2014 and 2015 respectively and Profit on Sales is 25%