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AFM-Module 4 Part-B Ratio Analysis Problems

The document contains examples and problems related to ratio analysis for accounting management. It includes calculations of various ratios such as creditors turnover ratio, average payment period, activity ratios, current ratio, liquidity ratio, absolute liquidity ratio, and provides financial information to calculate sales, debtors, closing inventory, creditors, fixed assets, gross profit and prepare summarized balance sheets.

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kanika
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47 views5 pages

AFM-Module 4 Part-B Ratio Analysis Problems

The document contains examples and problems related to ratio analysis for accounting management. It includes calculations of various ratios such as creditors turnover ratio, average payment period, activity ratios, current ratio, liquidity ratio, absolute liquidity ratio, and provides financial information to calculate sales, debtors, closing inventory, creditors, fixed assets, gross profit and prepare summarized balance sheets.

Uploaded by

kanika
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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AMITY BUSINESS SCHOOL

AMITY UNIVERSITY HARYANA


MBA-ACCOUNTING FOR MANAGEMENT-RATIO ANALYSIS(MODULE 4)
1 A trader purchases goods both on cash and credit terms. The following particulars are o

total purchases(gross) 200,000


cash purchases 20,000
purchase returns 34,000
creditors at the end 70,000
bills payable at the end 40,000
You are required to:
a)calculate creditors turnover ratio
b)calcualte average payment period
2 The following particulars are obtained from the books of M/s Ganesh Brothers.
total sales 500,000
cash sales 40,000
sales returns 20,000
debtors at the end 80,000
bills receivable at the end 20,000
reserve for doubtful debts 1,000
total purchases 300,000
cash purchases 50,000
purchase returns 10,000
creditors at the end 60,000
bills payables at the end 20,000
reserve for discount on creditors 2,000
opening stock 50,000
closing stock 40,000
gross profit 100,000
fixed assets 1,000,000
calculate activity(turnover) ratios
ing particulars are obtained from the books.

h Brothers.
3 you are given the following information:
cash 18,000
debtors 142,000
closing stock 180,000
bills payable 27,000
creditors 50,000
outstanding expenses 15,000
tax payable 75,000
calculate
a)current ratio
b)liquidity ratio
c) absolute liquidity ratio

4 find out fixed assets and gross profit from the following information:
sales Rs 10,00,000
gross profit ratio= 25%
fixed assets turnover ratio(on cost of sales) 5 times

5 Given
current ratio=2.8
acid-test ratio=1.5
working capital=Rs 1,62,000
calcualte:
a) current assets
b) current liabilities
c)liquid assets
d)stock
6 Following are the ratios relating to the trading activities of Neela Traders Ltd.
receivable turnover =90 days(360 days a year)
inventory turnover = 3 times
payables turnover=3 months
gross turnover ratio=25%
gross profit for the year amounted to Rs 18,000. Closing inventory of the
year is Rs 2,000 above the opening inventory.
bills receivable amount to Rs 2,500 and bills payable Rs 1,000.
Ascertain the following:
a)Sales
b)Debtors
c)Closing inventory and
d)Sundry creditors

7 From the following information, prepare a summarised balance sheet as on March31st,


Stock velocity 6
fixed assets turnover ratio 4
capital turnover ratio 2
gross profit 20%
debt collection period 2 months
creditors payment period 73 days
the gross profit was Rs 60,000
closing stock was Rs 5,000 in excess of opening stock
all workings should form part of your answer.
8 from the following information, make out a balance sheet with as many details as possi
a)current ratio=2.5
b)liquidity ratio=1.5
c)proprietary rato(fixed assets/proprietary fund)=0.75
d)working capital=Rs 60,000
e)reserves and suplus=Rs 40,000
f)bank overdraft=Rs 10,000
g)there is no long-term loan or fictitious assets
ading activities of Neela Traders Ltd.

18,000. Closing inventory of the

bills payable Rs 1,000.

a summarised balance sheet as on March31st,2015.

pening stock

t a balance sheet with as many details as possible.

ry fund)=0.75

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