Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5: a. Calculate (i) debt-equity ratio and (ii) Liquid ratio iii) Turnover ratios from the following balance sheet and additional information. Balance Sheet Liabilities

Question 5: a. Calculate (i) debt-equity ratio and (ii) Liquid ratio iii) Turnover ratios from the following balance sheet and additional information. Balance Sheet Liabilities Amount - Assets Amount - Equity shares of 10 each 100,000 Goodwill 60,000 Reserves 20,000 Fixed Assets at cost 140,000 Profit and loss account 30,000 Stock 30,000

image text in transcribed

Secured loan 80,000 Sundry debtors 30,000 Sundry Creditors 50,000 Advances 10,000 Provision for taxation 20,000 Cash 30,000 300,000 300,000 The sales for the year were 560,000 and 25% was on cash. Opening Stock & Debtors is 18,000 each.

Question 5: a. Calculate (i) debt-equity ratio and (ii) Liquid ratio iii) Turnover ratios from the following balance sheet and additional information. Balance Sheet Liabilities Amount - Assets Amount - Equity shares of 10 each 100,000 Goodwill 60,000 Reserves 20,000 Fixed Assets at cost 140,000 Profit and loss account 30,000 Stock 30,000 Secured loan 80,000 Sundry debtors 30.000 Sundry Creditors 50,000 Advances 10,000 Provision for taxation 20,000 Cash 30,000 300,000 300,000 The sales for the year were 560,000 and 25% was on cash. Opening Stock & Debtors is 18,000 each

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

International Accounting A User Perspective

Authors: Suadagaran, Shahrokh M, Smith Lawrence Murphy

5th Edition

1531018661, 9781531018665

More Books

Students also viewed these Accounting questions

Question

Determine Leading or Lagging Power Factor in Python.

Answered: 1 week ago

Question

Distinguish between HRD and human resource management (HRM)

Answered: 1 week ago

Question

Define what the four-fifths rule is.

Answered: 1 week ago