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Volkswagen approaches Skoda for a joint venture for manufacturing a renovated car with least cost. Volkswagen identifies the financial ratios of Skoda. Indicate the amount
Volkswagen approaches Skoda for a joint venture for manufacturing a renovated car with least cost. Volkswagen identifies the financial ratios of Skoda. Indicate the amount of funds involved and prepare Balance - Sheet.
Current Ratio
3
Liquid Ratio
2
Gross profit to sales
0.2
Net working capital to net worth ratio
0.3
Sales to net fixed assets
2.5
Sales to net worth
1.5
Sales to debtors
6
Reserves to capital ratio
1
Net worth to long term loans
20
Stock velocity
2 months
Paid up Share Capital
Rs. 20,00,000
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