O.M. Ltd has a Current Ratio of 3.5:1 and Quick Ratio of 2:1. If the excess of Current Assets over Quick Assets as represented by Stock is Rs 1,50,000, calculate Current Assets and Current Liabilities.
Current ratio= current assets/current liabilities=3.5
Current assets =3.5 current liabilities
Quick ratio= quick assets/ current liabilities=2
Quick assets= current assets- stock
(3.5 current liabilities-150000)/current liabilities=2
3.5 current liabilities-150000=2 current liabilities
3.5 Current liabilities-2 current liabilities = 150000
1.5 current liabilities= 150000
Current liabilities = 150000/1.5= 100000
Current assets=3.5*100000=350000
Compute Debt Equity Ratio using the following information:
Particulars | Amount (RS.) |
Total Assets | 3,50,000 |
Total Debts | 2,50,000 |
Current Liabilities | 80,000 |
(a)From the following information, compute Debt-Equity Ratio:
Long Term Borrowings | 2,00,000 |
Long Term Provisions | 1,00,000 |
Current Liabilities | 50,000 |
Non-Current-Assets | 3,60,000 |
Current - Assets | 90,000 |
(b) The current ratio of X. Ltd is 2:1. State with reason which of the following transaction could (i) increase; (ii) decrease or (iii) not change the ratio.
(1) Included in the trade payables was a bills payable of Rs 9,000 which was met on maturity.
(2) Company issued 1,00,000 equity shares of Rs 10 each to the Vendors of machinery purchased.
Compute Working Capital Turnover Ratio using the following information:
Particulars | Amount (Rs) |
Cash Sales | 1,30,000 |
Credit Sales | 3,80,000 |
Sales Returns | 10,000 |
Liquid Assets | 1,40,000 |
Current Liabilities | 1,05,000 |
Inventory | 90,000 |
On the basis of the following information, calculate:
(i) Debt-Equity Ratio and
(ii) Working Capital Turnover Ratio
Information: Rs.
Net Sales 60,00,000
Cost of goods sold 45,00,000
Other current assets 11,00,000
Current liabilities 4,00,000
Paid up share capital 6,00,000
6% Debentures 3,00,000
9% Loan 1,00,000
Debenture Redemption Reserve 2,00,000
Closing Stock 1,00,000