Mumbai University Problems (12 Marks)

Illustration 1: October 2005 From the given balance sheet and additional information calculate the following ratios. a. Proprietory Ratio b. Debt Equity Ratio c. Current Ratio d. Debtors turnover ratio e. Creditors turnover ratio. Balance Sheet as on 31-3-2004 Liabilities Amount Assets Amount 6,00,000 Share Capital 5, 00,000 Fixed Assets 1,00,000 Reserves 1,10,000 Debtors 20,000 Long Term Loans 1, 00,000 Cash Balance 40,000 Creditors 50,000 Stock 7,80,000 7,80,000 Cr. Sales for the year were Rs. 5, 20,000/Cr. Purchases amounted to Rs. 4, 00,000/-

Illustration 1: April 2003 From the following data calculate: 1. Current Ratio 2. Stock to working capital ratio 3. Average collection period 4. Debtors turnover ratio. Fixed assets Stock Debtors Bills receivable Cash and Bank Creditors Bills payable Sales Illustration 2: October 2003 Calculate: 1. Debtors turnover ratio. 2. Stock to working capital ratio 3. Current Ratio 4. GP ratio from the information Given Below: Rs. 2, 00,000 50,000 11,000 4,000 26,000 16,000 6,000 2, 00,000

1 2 3 4 5 6 7 8 9

Debtors at the beginning of the year Debtors at the end of the year Total sales Cash sales Creditors Bank overdraft Cash Stock Gross profit

Rs 90,000 1, 10,000 7, 00,000 2, 00,000 40,000 22,000 15,000 42,000 1,40,000

Illustration 3: April 2004 From the given balance sheet and additional information calculate the following ratios. a. Proprietory Ratio b. Debt Equity Ratio c. Current Ratio d. Debtors turnover ratio e. Creditors turnover ratio. Balance Sheet as on 31-3-2004 Liabilities Amount Assets Amount 6,00,000 Share Capital 5, 00,000 Fixed Assets 1,00,000 Reserves 1,10,000 Debtors 20,000 Long Term Loans 1, 00,000 Cash Balance 40,000 Creditors 50,000 Stock 7,60,000 7,60,000 Credit Sales for the year were Rs. 5, 20,000/Credit Purchases amounted to Rs. 4, 00,000/Illustration 4: October 2004 Calculate: 1. Debt to equity ratio. 2. Current Ratio 3. Debtors turnover ratio From the following information: 1 2 3 4 5 6 7 8 9 Debtors at the beginning of the year Debtors at the end of the year Creditors Overdraft Total sales Cash sales Bank overdraft Cash Stock Rs 40,000 80,000 40,000 10s,000 40,000 22,000 15,000 42,000 1,40,000

Gross profit

Illustration 1: April 2012. Given below is the vertical Balance Sheet of Etch Square Ltd. For the Financial year 20102011. Sources of Funds Rs. Rs. A) Shareholders fund: 1,00,000 I. equity