Question
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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