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The financial summary of PQR Ltd. for the year ending 31-12-2023 includes: $ Cash 1,20,000 Sundry debtors 3,00,000 Short term investment 1,50,000 Stock 22,00,000 Prepaid

The financial summary of PQR Ltd. for the year ending 31-12-2023 includes:


$

Cash

1,20,000

Sundry debtors

3,00,000

Short term investment

1,50,000

Stock

22,00,000

Prepaid expenses

40,000

Total current assets: $28,10,000


$

Current liabilities

9,50,000

7% Debentures

12,00,000

Equity share capital

18,00,000

Retained earnings

5,00,000

Statement of Profit for the year ending 31-12-2023


$

Sales (35% cash sales)

80,00,000

Less: Cost of goods sold

60,00,000

Profit before interest & tax

20,00,000

Less: Interest

1,80,000

Profit before tax

18,20,000

Less: Tax @27%

4,91,400

Net Profit: $13,28,600

Calculate: (i) Quick ratio, (ii) Capital gearing ratio, (iii) Return on net worth, and (iv) Receivables conversion period.

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