RATIO ANALYSIS

Q1) Calculate current and Acid test ratio from the following:
Particulars 2009 2010
Stock 25000 40000
Debtors 10000 16000
Cash at bank 5000 4000
Creditors 8000 15000
Bills Payable 2000 3000
Provision for taxes 5000 7000
Bank Overdraft 5000 15000
(2009: CR-2:1, ATR-1:1)
(2010: CR-1.5:1, ATR-0.8:1)

Q2) Calculate debt to equity ratio from the following

Total Assets 260,000
Total debt 1,80000
Current liabilities 20,000 (ans-2:1)

Q3) Calculate debt to equity ratio from the following

Capital employed 24,00,000
Long term debt 16,00.000 (2:1)

Q4) calculate current, Quick and Debt to equity ratio.

Liabilities Amount Assets Amount
Share capital 200,000 Land & Building 140000
P&L A/c 30000 Plant & machinery 350000
General reserve 40000 Stock 200000
12% debentures 4,20,000 Sundry debtors 100000
Sundry Creditors 100,000 Bills Receivable 10000
Bills Payable 50,000 Cash at bank 40000
(CR-2.33:1, QR-1:1, 1.56:1)
Q5) Calculate Stock Turnover Ratio
Opening stock 20,000
Closing stock 10,000
Purchases 50,000
Wages 3000
Carriage inward 2000 (4.3 times)

Q6) Calculate STR

Cash sales 80000
Credit sales 200000
Return inward 10,000
Opening stock 25000
Closing stock 30,000
Gross profit is 25% (7.36 times)

Q7) Calculate Creditors turnover ratio and average payment period.

Total purchases 581000
Cash purchases 30000
Purchases returns 51000
Creditors at the end 105000
Bills Payable at the end 60,000
(3.03, 3.96 months or 118.8 days)