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Ratio Analysis questions

The document provides a series of financial problems related to balance sheets, ratios, and calculations for XYZ Company and other entities. It includes tasks to calculate various financial ratios such as current ratio, liquid ratio, debt-equity ratio, and turnover ratios based on provided balance sheet data. The document serves as a guide for financial analysis and ratio computation.

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3 views

Ratio Analysis questions

The document provides a series of financial problems related to balance sheets, ratios, and calculations for XYZ Company and other entities. It includes tasks to calculate various financial ratios such as current ratio, liquid ratio, debt-equity ratio, and turnover ratios based on provided balance sheet data. The document serves as a guide for financial analysis and ratio computation.

Uploaded by

aishifighting
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1. From the following is the Balance Sheet of XYZ Company as on 31.12.

2020

Liabilities Amount Assets Amount


Equity Share of Rs.10 each 1,00,000 Goodwill 50,000
Reserves 25,000 Fixed Assets 1,50,000
P/L account 40,000 Stock 40,000
Secured Loan 70,000 Sundry Debtors 50,000
Sundry Creditors 50,000 (-) Reserve for
Bank Overdraft 30,000 doubtful debts 1,000 49,000
Provision for taxation 20,000 Advances 10,000
Bank Balance 20,000
Cash in hand 16,000

3,35,000 3,35,000

From the balance sheet calculate


a) Current ratio
b) Liquid ratio
c) Absolute liquid ratio

2. From the following is the Balance Sheet of XYZ Company as on 31.12.2020

Liabilities Amount Assets Amount


Equity Share of Rs.10 each 5,00,000 Land and building 3,50,000
5% Debentures 2,00,000 Plant and Machinery 2,50,000
Bank loan 1,50,000 Cash in hand 25,000
Sundry creditors 75,000 Cash at bank 55,000
Bills payable 50,000 Sundry debtors 85,000
Outstanding expensed 5,000 Bills Receivables 1,05,000
Stocks 1,00,000
Prepaid expenses 10,000

9,80,,000 9,80,000
From the balance sheet calculate
d) Current ratio
e) Liquid ratio
f) Absolute liquid ratio

3. Calculate Current ratio and quick ratio :

Sundry debtors- 4,00,000 ; Prepaid expenses- 40,000; debentures-2,00,000; stock-


1,60,000; bills payable- 80,000; Marketable securities- 80,000; Sundry Creditors-
1,60,000; Cash- 1,20,000; Expenses Payable- 1,60,000

4. Current assets of a company are 5,00,000; Current Ratio = 2:5:1 and Quick Ratio= 1:1.
Calculate the value of current liabilities, Liquid assets and Stock.

5. Current Liabilities of a company are 1,20,000; Current Ratio = 3 and Quick Ratio= 0.90
Calculate the value of current assets , Liquid assets and Stock.

Solvency Ratio

6) The following figures are taken from balance sheet

Equity share capital 1,10,000


6% Preference share capital 30,000
General reserve 50,000
Reserve for Contingency 20,000
6% Mortgage debentures 50,000
Sundry creditors 20,000
Preliminary expenses 5,000
Prepaid expenses 4,000

Calculate Debt- Equity ratio from the above data

7) From the following information, calculate debt-equity ratio, proprietary ratio and solvency
ratio (Total assets to Total Liabilities)

Balance sheet as at 31st March 2021


Particulars Rs
1) Equity and Liability
A Shareholders fund
a) Share capital
Preference share capital 100,000
Equity share capital 3,00,000 4,00,000

b) Reserves and surplus 1,10,000


(-) Preliminary expenses (--) 10,000 1,00,000
B. Non current liabilities
Long term borrowing 1,50,000
c. Current Liabilities 50,000
Total 7,00,000

2) Assets
A Non current assets
Fixed assets 4,00,000
Non current investment 1,00,000
B current assets 2,00,000
Total 7,00,000

8)
Preference share capital 2,00,000
Equity share capital 3,00,000
Reserves / Surplus 1,00,000
Debentures 2,00,000
Creditors 50,000
Discount on Issue of shares 50,000
Bank loan 1,50,000
Fixed assets 5,50,000
Current assets 4,00,000
Activity / Turnover Ratios

9) From the following calculate stock turnover ratio

Total sales 1,50,000


Return inwards 20,000
Stock at the beginning of the year 40,000
Stock at the end of the year 26,000
Gross profit for the year 66,000

10) The following particulars are available

Direct expenses 8,000


Opening stock 12,000
Purchases 1,00,000
Interest paid 3,000
Closing stock 12,000

11) Cost of goods sold 5,00,000; opening stock – 40,000; closing stock – 60,000. Find Inventory
Ratio and Inventory coverage period.

12) Calculate Debtors Turnover Ratio and Average Collection Period


Cash sales during the year 1,50,000
Credit sales 2,70,000
Total debtors in the beginning 55,000
Total debtors at the end 45,000
Return inwards 20,000

13) From the following information, calculate


a) debtors turnover ratio
b) Average collection period
c) Payable turnover ratio
d) Average Payment period
Sales - 8,75,000, Creditors – 90,000, Bills receivable – 48,000, Bills Payable – 52,000,Purchases –
4,20,000, Debtors – 59,000

14) The Balance sheet of A lts is as follows


Liabilities 2022 Assets 2022
Equity share capital 3,00,000 Good will 2,00,000
Reserve fund 1,50,000 Land & Building 3,00,000
6% debentures 2,00,000 Plant & Machinery 2,50,000
Mortgage loans 4,00,000 Patents 50,000
Creditors 50,000 Stock 1,50,000
Bills payable 25,000 Sundry debtors 1,00,000
Bank overdraft 40,000 Bills Receivable 80,000
Outstanding expenses 10,000 Marketable securities 18,000
Tax liabilities 15,000 Cash Balance 40,000
Prepaid expenses 2,000
11,90,000 11,90,000

From the information calculate Current Ratio, Acid ratio, Inventory Turnover Ratio, Inventory
Conversion Period, Debtors Turnover Ratio, Average Collection period, Creditors Turnover
Ratio, Average Payment Period.
15)

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