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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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