BBA0203: Principles of Finance

Assignment of Final Exam Summer 2020

Time: 04 Hours/ Marks: 10

From the above information, calculate the following ratios and interpret the result by comparing it with
the corresponding industry average:
Required Ratios Industry Avg.
1. Current ratio 2:1
2. Acid-test ratio 3:1
3. Average collection period 10 Days
4. Inventory turnover 8
5. Total debt/equity 2:1
6. Long-term debt/total capitalization 0.50
7. Gross profit margin 0.60
8. Net profit margin 0.20
9. Total asset turnover 3
10. Return on assets 0.35

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