Question
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started