Question - 1 The following is the statement of comprehensive income and financial position ABC Company ABC Company Income Statement Rs. Rs. 2001 2000 Sales 5,834,400 3,432,000 Cost of Goods Sold 5,728,000 2,864,000 Other expense 680,000 340,000 Depreciation Expenses 116,960 18,900 EBIT/ Loss (690,560) 209,100 Interest expense 176,000 62,500 EBT/ Loss (866,560) 146,600 Income Tax (346,624) 58,640 Net Profit/Loss (519,936) 87,960 ABC Company Balance Sheet Assets 2001 2000 Cash 7,282 9,000 Short term investment 0 48,600 Acc. Receivable 632,160 351,200 Inventories 1,287,360 715,200 Total current assets 1.926,802 1,124,000 Fixed Assets Plant & Equipment 1,202,950 491,000 Less: Acc dep 263,160 146,200 939,790 344,800 Total assets 2,866,592 1,468,800 Liabilities & Equities Current liability A/c Payable 524,160 145,600 Notes payable 720,000 200,000 Accruals 489,600 136,000 Total Current Liability 1,733,760 481,600 Non-Current Liabilities and Equity Long-term debt 1,000,000 323,432 Common Stock 460,000 460,000 Retained Earning (327,168) 203,768 1,132,832 987,200 Total Equities 2,866,592 1,468,800 Required: Explain the broader concept of these ratio areas and calculate at least two ratios in each area for both years and give your comments about firm performance: (Note: Do not take average of two years to calculate any formula, work on individual year figure for all calculation. For example, do not take average inventory or average receivable) 1. Uquidity 3. Debit to Equity ratio 4. Return on Asset 2. Profitability (long term Liabilities) 5. Coverage ratio