Problem Based on Ratio Analysis_ Part_2

T 4:- A company has following Capital:

7 % Preference Share of Rs.100 each Rs.6,00,000

Equity Share of Rs.10 each Rs.16,00,000
Rs.22,00,000
The additional information available relating to its financial year ending 31-03-2016 is :
Profit after taxation @ 50% Rs.5,42,000
Equity Dividend 20%
Depreciation Rs.1,20,000
Market price of Equity Shares Rs.40
Capital commitment Rs.2,40,000

You are required to calculate (a) The dividend yield in the equity shares. (b) The cover for the preference and equity
dividends. (c ) The earning yield (d) The price earnings ratio (e) the net cash flow and (f) The reason for the comparison
of net cash flow with capital commitment.

T 5:- Following Balance Sheet is given of XYZ Ltd. For the year ended 31st March, 2016:

Liabilities Rs. Assets Rs.

Issued Capital-2,000 Equity 2,00,000 Land and Buildings 1,50,000
Shares of Rs.100 each
Reserves 90,000 Plant and 80,000
Machinery
Profit & Loss Account 60,000 Stock in Trade 1,49,000
Bills Payable 40,000 Sundry Debtors 41,000
Other Current Liabilities 90,000 Cash and Bank 30,000
Balance
Bills Receivable 30,000
4,80,000 4,80,000
Calculate (i) Sales to Capital Employed (ii) Sales to Fixed Assets (iii) Sales to Working Capital (iv) Sales to Total Assets (v)Stock
Turnover Ratio (vi) Receivable Turnover Ratio and (vii) Creditors Turnover Ratio with reference to the following additional
information.
(a) Sales (Credit) Rs.8,50,000 (b) Cost of Goods Sold Rs.5,10,000 (c) Average Inventory Rs.1,24,250 (d) Average Accounts
Receivables Rs.85,000 (e) Average Accounts Payables Rs.80,000 , and (f) Credit Purchases Rs.5,45,250.

T 6:- From the following balance sheet of Rim Zim Ltd. As on 31 st March,2016, calculate (i) Current Ratio, (ii) Quick Ratio, (iii)
Absolute Liquidity Ratio, (iv) Ratio of Inventory to Working Capital, (v) Ratio of Current Assets to Fixed Assets, (vi) Debt to Equity
Ratio, (vii) Proprietary Ratio, (viii) Capital Gearing Ratio and (ix) Fixed asset Ratio.

Balance Sheet
Liabilities Rs. Assets Rs.
Equity Share Capital 10,00,000 Goodwill (At Cost) 5,00,000
6% Preference Share Capital 5,00,000 Plant & Machinery 6,00,000
General Reserve 1,00,000 Land & Buildings 7,00,000
Profit & Loss A/c 4,00,000 Furniture & Fixtures 1,00,000
Provision for Tax 1,76,000 Stock –in-Trade 6,00,000
Bills Payable 1,24,000 Bills Receivable 30,000
Bank Overdraft 20,000 Debtors 1,50,000
Creditors 80,000 Bank 2,00,000
12% Debentures 5,00,000 Marketable Securities 20,000
29,00,000 29,00,000