Calculate (i) debt-equity ratio and (ii) Liquid ratio iii) Turnover ratios from the following balance...
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Finance
Calculate (i) debt-equity ratio and (ii) Liquid ratio iii) Turnover ratios from the following balance sheet and additional information.
Balance Sheet
Liabilities
Amount -
Assets
Amount -
Equity shares of 10 each
100,000
Goodwill
60,000
Reserves
20,000
Fixed Assets at cost
140,000
Profit and loss account
30,000
Stock
30,000
Secured loan
80,000
Sundry debtors
30,000
Sundry Creditors
50,000
Advances
10,000
Provision for taxation
20,000
Cash
30,000
300,000
300,000
The sales for the year were 560,000 and 25% was on cash. Opening Stock & Debtors is 18,000 each.
Ratio analysis is a quantitative analysis of data enclosed in an enterprises financial statements. Expound the advantages and limitations of ratio analysis.
Please find below the additional information required for answering Question
Cost Of Goods Sold can be calculated by using the below formula.
Cost Of Goods Sold = Sales/
Closing Stock
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