Q.

1
1 Debt Ratio = T.D / T.A
0.67 120,000/ 180,000 Sales 200,000
CGS 90,000
2 Operating Profit Margin = Operating Profit Margin / Sales GP 110,000
0.15 30,000 / 200,000 Op. Exp 80,000
Op.Profit 30,000
3 Return on Equity = N.I / SHE
0.167 10,000 / 60,000

4 Net Profit Margin = N.I / Sales

0.05 10,000 / 200,000

5 Gross Profit Ratio = G.P / Sales

0.55 110,000 / 200,000

6 Operating Expense Ratio = Operating Expense / Sales

0.4 80,000 / 200,000

7 Assets T.O = Sales / T.A

1.11111111111111 200,000 / 180,000

Q.2

1 C.R = C.A / C.L Cash 1,000,000 C.L 2,000,000

3 6,000,000 / 2,000,000 2,000,000 A/C Rec. 1,000,000 L.T.D 2,000,000
Inventory 4,000,000
2 Avg. Collection Period = Sales / A/c Rec. C.A 6,000,000 T.D 4,000,000
20 20000000 / 1,000,000 1,000,000 F.A 4,000,000 N.W 6,000,000
360 Days / A/c Rec. T.O T.A 10,000,000 T.L.E 10,000,000
18 360 / 20 20
3 Sales to T.A = Sales / T.A
2 20000000 / 10,000,000 10,000,000

4 Debt to T.A = Debt / T.A

40% 4,000,000 / 10,000,000 4,000,000

5 Fixed Asset T.O = Sales / F.A

5 20000000 / 4,000,000 4,000,000

6 Inventory T.O = Cost of Goods Sold / Inventory

5 20000000 /4,000,000 4,000,000

Q.3 Cash 60,000 C.L 200,000

A/C Rec. 200,000 L.T.D 500,000
Inventory 400,000 T.D 700,000
Plant 540,000 C.E 500,000
T.A 1,200,000 T.L.E 1,200,000
1 Quick Ratio = (C.A - Inv. ) / C.L
1.3 (660,000-400,000)/C.L

2 Avg. Collection Period = Sales / A/c Rec. 1.3 = 260,000 /C.L

18 3,600,000/ 200,000 200,000
C.L 1.3 = 260,000
20 days 360 / 18 18
200,000
3 T.D to N.W = T.D / Net Worth 500,000
1.4 700,000 / 500,000

4 T.A T.O = Sales / T.A

3 3,600,000 / 1,200,000 3,600,000

5 Inventory T.O = Cost of Goods Sold / Inventory

9 3,600,000/ 400,000 400,000

Q.4
Cash 100,000 C.L 457778
1 C.R = C.A / C.L A/c. Rec 444,444 L.T.D 142,222
2.5 1,144,444 / 457,778 457,778 Inv 600,000 T.D 600,000
Plant 355,556 C.E 900,000
2 Avg. Collection Period = Sales / A/c Rec. T.A 1,500,000 T.L.E 1,500,000
6.75 3,000,000/ 444,444 444,444

54 days 365 / 6.75

3 T.D to T.A = T.D / T.A

40% 600,000 / 1500,000 1,500,000

4 T.A T.O = Sales / T.A

2 3,000,000 / 1500,000 3,000,000

5 Inventory T.O = Cost of Goods Sold / Inventory

5 3,000,000 / 600,000 600,000