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4

Con. 5716-OM-2395-11.

Accounting Ratios—

(1)    Gross Profit Ratio 20%

(2)    Gross Profit Hs. 1,20,000

(3)    Credit Łiaies to total Salos 80%

(4)    Tota! aasets tumever 3 times

(5)    Stock tumover ratio 8 times

(6)    Average coiiection period (1 Yr = 360 days) 18 days.

(7)    Current ratio 1 6.

(8)    Lang temi debts to Eguity 40%.

OH

6. Following is the Balance Sheet of M/S. Bronze Ltd. as at 31 st March, 2009.

Liabilities	Rs.	Assets	Rs.
Equity Capital	15,00,000	Fixed assets	15,00,000
14% Preference Capitl	5,00,000	Bank	2,00,000
Profit & Loss A/c	12.50,000	Sundry Debtors	8,50,000
1 Secured Loan : 10% Debentures Current Liabilities: Sundry Creditors Bills payable Bank overdraft	8,00,000 2,00,000 50,000 1,50,000	Stock Biils Receivable Prepaid Expenses	12,50,0001 5,80,000 70,000
Total	44,50,000	Total	44,50,000

During the year 2009, the total sales were Rs. 1,20,00,000 and cash sales were 25% of total sales. Net profit before tax at 50% was Rs. 18,00,000.

There are no non-operating items in the Balance Sheet.

Rearrange the above balance sheet in vertical form and calculate following ratios :—

(a)    Current ratio

(b)    Capital Gearing ratio

(c)    Liquid ratio

(d)    Propriotory ratio.

7.    (a) State the objectives of Ratio Analysis.

(b)    Find out stock turnover ratio from the following information Opening stock Rs. 1,00,000 Cash sales Rs. 3,40,000 Credit sales Rs. 8,00,000 Return inwards Rs. 20,000 Closing stock Rs. 1,20,000 Gross profit ratio is 20%

(c)    Calculate the dividend payout ratio from the following data :—

Net profit before tax Rs. 45,000 Provision for tax Rs. 22,500 Preference dividend Rs. 9,000 No.of equity shares 13,500 Dividend paid per equity share Rs.0.50 OR

8.    Write short notes on : (any 3)

(a)    Cash Flow Statement

(b)    Capital Gearing Ratio

(c)    Non cash transactions in Cash Flow statements

(d)    Importance of Balance sheet ratios

(e)    Contingent Liability.

-S-