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The financial statements of XYZ Ltd. contain the following information for the year ending 31-12-2015. $ Cash 2,00,000 Sundry debtors 5,00,000 Short term investment 4,00,000

The financial statements of XYZ Ltd. contain the following information for the year ending 31-12-2015.


$

Cash

2,00,000

Sundry debtors

5,00,000

Short term investment

4,00,000

Stock

25,00,000

Prepaid expenses

15,000

Total current assets: $36,15,000


$

Current liabilities

12,00,000

12% Debentures

18,00,000

Equity share capital

25,00,000

Retained earnings

10,00,000

Statement of Profit for the year ending 31-12-2015


$

Sales (25% cash sales)

50,00,000

Less: Cost of goods sold

35,00,000

Profit before interest & tax

15,00,000

Less: Interest

2,50,000

Profit before tax

12,50,000

Less: Tax @30%

3,75,000

Net Profit: $8,75,000

Calculate: (i) Current ratio, (ii) Debt equity ratio, (iii) Return on total assets, and (iv) Inventory turnover ratio.

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