Problems on Ratio Analysis

PROBLEMS PROBLEM S ON RATIO RATIO ANAL A NALYSIS YSIS

From the following information prepare Balance Sheet Crrent Ratio !"#$ Li%i& Ratio'"# Proprietar( Ratio$ )"*#$ +or,ing capital R-".)$)))$ Re-er/e Re-er/e an& Srpl- R-"0)$)))$ Ban, O/er&raft R-"')$))) There i- no Long Term Loan or Fictitioictiti o- A--et-"

PROBLEM NO: II

Ratio- relating Co-moCo-mo- Lt& are gi/en a- follow-1 2ro-- Pro3t Ratio1

' #4

Stoc, 5elocit(

. month-

6e7tor- 5elocit(

8 month-

Cre&itor- 5elocit(

8 month-

2ro-- Pro3t

R-" .)$)))

Clo-ing i- e%al to Opening Stoc,

Fin& ot1

SaleClo-ing Stoc, Sn&r( 6e7torSn&r( Cre&itor-

PROBLEM 3

 Yo ha/e 7een frni-he& with the 3nancial information of Progre--i/e Manfactring Limite& a- n&er1 Balance sheet as on March 31 Lia7ilitie-

A--etR-

R-

E%it( -hare capital ')$))$)) 9R- ')) each: ) Retaine& earning-

Plant e%ipment

8$.;$)) Lan& ) 7il&ing

Sn&r( cre&itor-

an& .$0)$))) an&   ;)$)))

'$)0$)) Ca-h

'$.)$)))

) Bill- Pa(a7le Other lia7ilitie-

!$))$)) Sn&r( &e7tor) R- 8$.)$))) crrent   )

!)$)) Le-- allowance- 8$!)$))) 0)$))) Stoc,

0$;)$)))

Prepai& in-rance

  '!$)))

'.$
'.$
Statement of prot for the year ended March 31. Sale-

R- 0)$))$)))

Le-- co-t of goo&-   -ol&

8)$;)$)))

2ro-- pro3t on -ale-

<$!)$)))

Le-e=pen-e-

.$;)$)))

operating  

Net pro3t Le-- ta=e- 9)"8#: Net pro3t after ta=e-

!$0)$))) ;0$))) '$#.$)))

Sn&r( &e7tor- an& -toc, at the 7eginning of the (ear were R8$))$))) an& R- 0$))$)))$ re-pecti/el(" 6etermine the Manfactring Lt&1 a" 7" c" &" e" f" g" h" i"

following

ratio-

of

M>S

Progre--i/e

Crrent ratio Aci& te-t ratio Stoc, trno/er 6e7tor-? trno/er 2ro-- pro3t ratio pro3t ratio Operating ratio Earning- per -hare 9EPS: Rate of retrn on e%it( capital

PROBLEM 

From the following particlar-$ prepare the Balance Sheet of SR Lt&"$ a- at March 8'$ !)'#1 Crrent Ratio +or,ing Capital Capital Bloc, to Crrent A--etFi=e& A--et to Trno/er Ca-h Sale->Cre&it Sale6e7entre->Share Capital Stoc, 5elocit( Cre&itor- 5elocit( 6e7tor- 5elocit( 2ro-- Pro3t Ratio Capital Bloc,1 Net Pro3t Re-er/e

PROBLEM !

! R-"#$))$))) 81! !18 !18 '18 8 month8 month8 month8)4 E%it( Capital pl- 6e7t Capital '#4 of Trno/er #4 of Trno/er

@-ing the following information$ complete the Balance Sheet of PR Lt&"$ gi/en 7elow1

Aci& Te-t Ratio 1 )"<)  Total 6e7t to Net +orth 1 )"0#1'  Trno/er of Total A--et- to Sale-1 81' 2ro-- Pro3t 1 0)4 A/erage Collection Perio& 9A--me 8.) &a(- a (ear: 1 8) &a(In/entor( Trno/er Ratio 0 timeBalance Sheet of PR Lt&"$ a- on "" Lia7ilitieBill- Pa(a7leE%it( Capital Retaine& Earning Total

Amont A--etR-"  Ca-h !$8)$))) Bill- Recei/a7le8$*)$))) In/entor( Plant  Machiner(  Total

Amont R-"     

PROBLEM "

From the following information of SR Lt&"$ complete the proforma 7alance -heet if it- -ale- are R-" 8!$))$)))" Sale- to Net worth

1

!"8 time-

Crrent 6e7t to Net +orth

1

0!4

 Total 6e7t to Net worth

1

*#4

Net Sale- to In/entor(

1

0"* time-

Crrent Ratio

1

!"< time-

A/erage Collection Perio&

1

.0 &a(-

Fi=e& A--et- to Net worth

1

#8"!4

Lia7ilitieNet worth Long term 6e7t Crrent 6e7t

Amont R-"   

A--etFi=e& A--etCa-h Stoc,

Amont R-"   

 Total



Sn&r( 6e7torTotal

Pro7lem * "From the &ata calclate1 a" 7" c" &" e" f"

Sale 

2ro-- Pro3t Ratio Net Pro3t Ratio Retrn on Total A--etIn/entor( Trno/er +or,ing Capital Trno/er Net worth to 6e7t

!#$!)$)))

Other Crrent A--et-

*$.)$)))

Co-t of -ale

Net pro3t '#$))$))) In/entor( <$))$))) Crrent Lia7ilitie-

'<$!)$))) '0$ 0)$))) 8$.)$)))

;$))$)))

.$))$)))

Fi=e& A--et-

Net worth

6e7t"

 