Calculate (i) debt-equity ratio and (ii) Liquid ratio iii) Turnover ratios from the following balance...
80.2K
Verified Solution
Link Copied!
Question
Finance
- Calculate (i) debt-equity ratio and (ii) Liquid ratio iii) Turnover ratios from the following balance sheet and additional information.
Balance Sheet
| Liabilities | Amount - | Assets | Amount - |
| Equity shares of 10 each | 100,000 | Goodwill | 60,000 |
| Reserves | 20,000 | Fixed Assets at cost | 140,000 |
| Profit and loss account | 30,000 | Stock | 30,000 |
| Secured loan | 80,000 | Sundry debtors | 30,000 |
| Sundry Creditors | 50,000 | Advances | 10,000 |
| Provision for taxation | 20,000 | Cash | 30,000 |
|
| 300,000 |
| 300,000 |
The sales for the year were 560,000 and 25% was on cash. Opening Stock & Debtors is 18,000 each.
- Ratio analysis is a quantitative analysis of data enclosed in an enterprises financial statements. Expound the advantages and limitations of ratio analysis.
Please find below the additional information required for answering Question
Cost Of Goods Sold can be calculated by using the below formula.
Cost Of Goods Sold = Sales/
Closing Stock
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.