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RST Ltd. reports the following financial data for the year ending 31-03-2022: Current Assets: Cash: $2,20,000 Sundry debtors: $7,50,000 Short term investment: $1,75,000 Stock: $20,00,000

RST Ltd. reports the following financial data for the year ending 31-03-2022:

Current Assets:

  • Cash: $2,20,000
  • Sundry debtors: $7,50,000
  • Short term investment: $1,75,000
  • Stock: $20,00,000
  • Prepaid expenses: $45,000

Current Liabilities and Equity:

  • Current liabilities: $10,00,000
  • 9% Debentures: $14,50,000
  • Equity share capital: $21,00,000
  • Retained earnings: $12,00,000

Profit & Loss Statement:

  • Sales (50% cash sales): $90,00,000
  • Less: Cost of goods sold: $65,00,000
  • Profit before interest & tax: $25,00,000
  • Less: Interest: $2,10,000
  • Profit before tax: $22,90,000
  • Less: Tax @25%: $5,72,500

Net Profit: $17,17,500

Calculate: (i) Current ratio, (ii) Fixed charge coverage ratio, (iii) Return on equity, and (iv) Inventory conversion period.

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