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Question #02 Marks : 09(4.5+4.5) The information below is taken from the records of two companies in the same industry. The companies are X Limited
Question #02 Marks : 09(4.5+4.5) The information below is taken from the records of two companies in the same industry. The companies are X Limited and Y Limited and the data is as follows Particulars X Limited Y Limited (Taka) (Taka) Cash 210,000.00 320,000.00 Debtors (Net) 330,000.00 630,000.00 Inventory 1,230,000.00 950,000.00 Plant & Equipment 1,695,000.00 2,400,000.00 TOTAL ASSETS 3,465,000.00 4,300,000.00 Sundry Creditors 900,000.00 1,050,000.00 8% Debentures 500,000.00 1000,000.00 Equity Share Capital 1,100,000.00 1,750,000.00 Retained Earnings 965,000.00 500,000.00 TOTAL LIABILITIES 3,465,000.00 4,300,000.00 Sales 5,600,000.00 8,200,000.00 Cost of goods sold 4,000,000.00 6,480,000.00 Other operating expenses 800,000.00 860,000.00 Interest expenses 40,000.00 80,000.00 Income taxes 266,000.00 273,000.00 Dividends 100,000.00 180,000.00 Answer each of the following questions by making comparison of one or more, relevant ratios. A. Which company is using the equity shareholders' money more profitably. ? B. Which company is better able to meet current debts? Question # 03 Marks : 1012+2+2+4)
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