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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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