Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Ltd has the following Balance sheet for the year ended 31st March,2020. In addition, company has credit sales and cash sales for the year

XYZ Ltd has the following Balance sheet for the year ended 31st March,2020. In addition, company has credit sales and cash sales for the year is SR 950,000 and SR 500,000 respectively Balance Sheet Assets Amount Labilities Amount Plant & Machinery: 831,000 Equity Share Capital 10 SR each 525,000 Less: Deprecation: 145,000 Preference Share Capital @ 6% 100,000 Net Plant & Machinery 686,000 Note Payable 70,000 Buildings 100,000 Retained earning 105,000 Cash 120,000 Long-term loan (12%) 100,000 Inventory 160,000 Bonds (14%) 200,000 Account Receivable 50,000 Accounts Payable 60,000 Prepaid expense 44,000 Accrued expenses 14,000 Furniture 60,000 Bank Overdraft 46,000 Total 1,220,000 Total 1,220,000 Required: On the basis of the above information, calculate the following ratios and give suitable comments. 1. Current Ratio 2. Liquid Ratio 3. Debt Equity Ratio 4. Capital Gearing Ratio 5. Assets Turnover Ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions