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QUESTION 4: The following is the Balance Sheet of a XYZ Ltd. as at 31st December 2020: Liabilities P Assets P Share Capital Profit and

QUESTION 4: The following is the Balance Sheet of a XYZ Ltd. as at 31st December 2020:

Liabilities

P

Assets

P

Share Capital

Profit and Loss Account

General Reserve

12% Debentures

Sunday Creditors

Accounts Payable

2,00,000

30,000

40,000

4,20,000

1,00,000

50,000

Land and Buildings

Plant and Machinery

Stock

sundry Debtors

Accounts Receivable

Cash at Bank

1,40,000

3,50,000

2,00,000

1,00,000

10,000

40,000

8,40,000

8,40,000

Calculate:

a. Current Ratio (3 marks)

b. Quick Ratio (3 marks)

c. Inventory to Working capital (3 marks)

d. Debt to Equity Ratio (3 marks)

e. Proprietary Ratio (3 marks)

f. Capital Gearing Ratio (3 marks)

g. Current Assets to Fixed Assets (2 marks)

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