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The financial summary of XYZ Ltd. for the year ending 31-03-2022 includes: Current Assets: Cash: $2,10,000 Sundry debtors: $6,80,000 Short term investment: $3,90,000 Stock: $20,50,000
The financial summary of XYZ Ltd. for the year ending 31-03-2022 includes:
Current Assets:
- Cash: $2,10,000
- Sundry debtors: $6,80,000
- Short term investment: $3,90,000
- Stock: $20,50,000
- Prepaid expenses: $30,000
Current Liabilities and Equity:
- Current liabilities: $9,00,000
- 11% Debentures: $16,00,000
- Equity share capital: $22,50,000
- Retained earnings: $10,00,000
Profit & Loss Statement:
- Sales (40% cash sales): $82,00,000
- Less: Cost of goods sold: $57,00,000
- Profit before interest & tax: $25,00,000
- Less: Interest: $2,50,000
- Profit before tax: $22,50,000
- Less: Tax @28%: $6,30,000
Net Profit: $16,20,000
Calculate: (i) Quick assets ratio, (ii) Debt to total assets ratio, (iii) Net profit ratio, and (iv) Receivables conversion period.
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