Question
The following Trading and Profit and Loss Account of Fantasy Ltd. for the year 3132000 is given below Calculate: Income Statement Sales (30% cash sales)
The following Trading and Profit and Loss Account of Fantasy Ltd. for the year 3132000 is given below Calculate:
Income Statement
Sales (30% cash sales) | 1500000 |
Cost of Goods sold | 450000 |
Gross Profit | 1050000 |
Administrative Expenses | 225000 |
Selleing Expenses | 125000 |
Profit before Taxes: | 700000 |
tax | 245000 |
Income After tax (65 % of PBT) | ? |
Balance Sheet
Particular | Rs. | Particular | Rs. |
Equity share capital | 2,000,000 | Fixed Assets | 5,500,000 |
10% Preference share capital | 2,000,000 | Stock | 175,000 |
Reserves | 1,100,000 | Debtors | 400,000 |
10% Debentures | 1,000,000 | Cash | 225,000 |
Creditors | 100,000 | Fictitious Assets | 100,000 |
Bankoverdraft | 150,000 |
|
|
Bills payable | 45,000 |
|
|
Outstanding expenses | 5,000 |
|
|
Total | 6,400,000 | Total | 6,400,000 |
- Beside the details mentioned above, the opening stock was of Rs. 3,25,000. Taking 360 days of the year,
Required: calculate the following ratios; also discuss the position of the company:
- Gross profit ratio.
- Stock turnover ratio.
- Operating ratio.
- Current ratio.
- Liquid ratio.
- Debtors ratio.
- Creditors ratio.
- Rate of return on equity shares
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