Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting Text Problems And Cases

Authors: M Y Khan, P K Jain

6th Edition

125902668X, 978-1259026683

More Books

Students also viewed these Accounting questions

Question

=+Identify the key components of a strategic plan

Answered: 1 week ago