1 Rate of interest is not given

10 Current Ratio 2.5:1 21

Stock 80000
2 10% preference Share capital 1000000 Current liabilities 80000
Equity shares 1600000 160000 current assets 200000

Accumulated profits 640000 Liquid assets 120000

NPAT
NPAT available for Equity 2375000 Liquid ratio 1.5 1.5:1
shareholders 2275000
ROE 1.015625 11 Liquid Ratio 1.5:1
Stock 60000 28
3 ROI before tax 25% this solution could be wrong Current liabilities 120000
Tax 60% Liquid assets 180000
15% Loan 2500000 Current assets 240000
ROI after tax 10 Current ratio 2
29
4 Operating Profit Ratio 25% EBIT/SALES 12 Current ratio 2:01
Capital Turnover Ratio 2 SALES/CAPITAL EMPLOYED Quick ratio 1.5:1
Return on Investment 50% EBIT/CAPITAL EMPLOYED Current liabilities 80000
Current assets 160000
5 Operating Profit Ratio 20% EBIT/SALES Quick assets 120000 30
Capital Turnover Ratio 300% SALES/CAPITAL EMPLOYED Stock 40000
Return on Investment 60% EBIT/CAPITAL EMPLOYED
13 Current ratio 2.5:1
6 Operating Profit Ratio 12% EBIT/SALES Quick ratio 1.5:1
Capital Turnover Ratio 5 SALES/CAPITAL EMPLOYED Current liabilities 80000
Return on Investment 60% EBIT/CAPITAL EMPLOYED Current assets 200000
Quick assets 120000
7 Operating Ratio 60% Stock 80000
Operating Profit ratio 40% 1-Operating ratio
14 Current ratio 3:01
8 Gross Profit Ratio 40% gross profit /sales Net WC 200000
Office & Selling exp to sales 10% Office & selling exp/sales Inventory 220000
Operating ratio Operating exp /sales Current liabilities 100000 32
operating profit/sales Current assets 300000
 Liquid assets 80000

9 Gross Profit Ratio 15 Liquid ratio 1.5

Office & Selling exp to sales 10% Net WC 120000
Operating ratio 65% Inventory 80000
Current liabilities 80000
Current assets 200000 33

16 Current ratio 3:01

Liquid ratio 1:01
Working capital 200000
Current liabilities 100000
Current assets 300000
Liquid assets 100000 34
Stock 200000

17 Current ratio 4.5

Quick ratio 3
Inventory 36000
Current liabilities 24000 35
Current assets 108000
Quick assets 72000

18 Current assets 300000

Current liabilities 200000
Current ratio 1.5
Expected CR 2 36
Reduction in CL 50000

19 Current assets 500000

Current liabilities 200000
Current ratio 2.5
Expected CR 2
Increase in CL 50000 37
20 Current
Current assets
ratio 150000
AFTER PAYMENT 2
CL (BEFORE) 105000 105000
CL (AFTER) 75000
WC (BEFORE) 45000
WC (AFTER) 75000
CL paid 30000
Current liabilities 90000 38 10% preference Share capital 100000 22 Debt collection period
Stock on credit 10000 Equity shares 160000 stock turnover
CR after stock 2 Accumulated profits 640000 average debtors
CA (BEFORE) 190000 NPAT 2375000 cash sales
NPAT available for Equity
CA (AFTER) 200000 shareholders 2365000 Gross profit
WC(BEFOE) 100000 ROE 2.95625 stock at end
WC(AFTER) 100000 credit sals
39 Opening stock 29000 Total sales
Current ratio 2.5 closing stock 31000 cogs
Working capital 60000 sales 300000 average stock
Current assets 100000 gross profit 25% Opening stock
current liabilities 40000 cogs 240000
stock turnover ratio 8 23 current ratio
Gross profit 100000 Quick ratio
Total sales 525000 40 Stock turnover 5 Working capital
Sales returns 25000 closing stock 50000 gross profit ratio
Gross profit ratio 20% opening stock 46000 gross profit
sales 300000 stock turnover ratio
Net sales 140000 gross profit 20% current liabilities
Gross profit 10000 current liabilities 60000 current assets
Net profit 6000 liquid ratio 1 closing stock
B/R 2000 current assets 110000 cogs
Debtors 8800 cogs 240000 average stock
Stock 10000 Average stock 48000 Opening stock
Cash 6000
Creditors 12000 41 current ratio 4.5 24 Stock turnover ratio
B/P 8800 Quick ratio 3 Debtor days
CURRENT RATIO 1.29 Inventory 72000 Average stock
NET PROFIT RATIO 4.29% current assets 216000 Cash sales
GROSS PROFIT RATIO 7.14% current liabilities 48000 Gross Profit Ratio
Debtors ending
Opening stock 58000 42 stock turnover ratio 5 cogs
Purchases 484000 closing stock 69000 Net sales
Sales 640000 sales 400000 Credit sales
gross profit rate 25% Gross profit 25% Credit sales per month
cogs 480000 current liabilities 120000 Average debtors
closing stock 62000 Acid test ratio 0.75 Debtors at the beginning
Stock turnover ratio 8 current assets 159000
average stock 64000 25 Current ratio
opening stock 62000 cogs 320000 quick ratio
Purchases 420000 Inventory
Sales 600000 cash
gross profit rate on cost 33.33% Gross profit
cogs 450000.1 Cash sales
closing stock 31999.89 Debtors turnover ratio
net sales
Liquid ratio 1.5 = credit sales
NET WC 120000 Average debtors
stock 80000 current liabilities
current liabilities 80000 current assets
current assets 200000 closing debtors
opening debtors
opening stock 60000
Sales 800000
gross profit rate on sales 160000
cogs 640000
closing stock 100000
stock turnover rate 8

current ratio 4
Liquid ratio 3
Inventory 36000
current assets 144000
current liabilities 36000
quick assets 108000

stock 15000
debtors 13500
cash 5000
bank 10000
b/r 6000
p and m 60000
creditors 17500
b/p 6000
accrued interest 350
prepaid exp 150
debentures 25000
provision for taxation 1500
current ratio 1.95858
 Stock at the end was 3 times that in the beginning.  
4 months Receivables at the end were 3 times more than that in the beginning
3 26 average debt collection period 4 months
100000 Stock turnover ratio 3
25% of total sales Gross profit ratio 25%

25% Cash sales 33.33% of Credit sales

150000 Receivable beginning 10000
300000 Receivable at the end 50000
400000 Gross profit 100000
300000 cogs 300000
100000 Net sales 400000
50000 Credit sales 300000.75
Net credit sales per month 25000.0625
2.5 Average debtors 100000.25
1.5 Avereage stock 100000
120000 Opening stock 25000
25% Closing stock 75000
100000 Opening receivables 20000.05
3 Closing recibables 80000.2
80000 Opening sundry debtors 10000.05
200000 Closing sundry debtors 30000.2
80000
300000
100000
120000

3
4 months
100000
33.33% of credit sales
25%
160004.0001
300000
400000
300007.5002
25000.62502
100002.5001
40001.00003

4.5
3
72000
4000
100000 33.33% on cost
33.33% of credit sales
3
400030.003
300030.003
133343.3343
48000
216000
140000
126686.6687