9.The following are the balance sheet and profit and loss account of Sundara products limited as on
To Opening Stock 1,00,000 By Sales 8,50,000
Purchases 5,50,000 Closing Stock 1,50,000
Office exp 1,50,000 Non-Operating Income 15,000
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Balance Sheet as on 31st December 2015
Liabilities Rs. Assets Rs.
Equity Share Capital Land & Buildings 1,50,000
(2000 @ 100) 2,00,000 Plant & Machinery 1,00,000
5%Preference capital 50,000 Goodwill 30,000
Reserves 1,00,000 Stock in Trade 1,50,000
Debentures 1,50,000 A/C Receivables 1,00,000
Current Liabilities 1,50,000 Short term investment1,20,000
P&L A/C Balance 50,000 Cash & Bank 50,000
Note: a) On 1st Jan 2015, the Company is having Account receivables of 95,000.
b) Assume 20% sales are cash sales.
1)Working capital (2) Return on investment (3) Interest coverage ratio 4) Current Ratio 5) operating profit ratio 6) Debt Equity Ratio 7) Earnings per share 8)If Company has a PE Ratio is quoting at 12 times, what would be the Market Price of the share? (9) Stock Turnover ratio (time & days) (10) Receivable turnover ratio (time and Day).
