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5 15
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ITh
75%
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B. Find the following Gross Profit Ratio, Operating Ratio, Net Profit Ratio, Operating Net Profit Ratio, and Stock Turnover Ratio. The following Trading and Profit and Loss Account of Fantasy Ltd. for the year 31-3-2000 is given below:
Particular Particular
To Opening Stock 76,250
By Sales 5,00,000
Purchases 3,15,250
Closing stock 98,500
Carriage and Freight 2,000
Wages 5,000
Gross Profit b/d 2,00,000
5,98,500
5,9$,500
@
To Administration expenses
Selling and Distribution expenses
Non-operating expenses
Financial Expenses
Net Profit c/d
1,01,000
By Gross Profit b/d 12,000
Non-operating incomes:
2,000 Interest on Securities
7,000 Dividend on shares
$4,000 "Profit on sale of shares
2,06,000
2,00,000
1,500
3,750
750
2,06,000
C. Solve the following problem with the help of required ratio formulas and comment on the company's position. The Balance Sheet of Punjab Auto Limited as on 31-12-2002 was as follows:
Particular Rs. Particular Rs.
Equity Share Capital 40,000
Plant and Machinery 24,000
Capital Reserve 8,000
Land and Buildings 40,000
8% Loan on Mortgage 32,000
Furniture & Fixtures 16,000
Creditors 16,000
Stock 12,000
Bank overdraft 4,000
Debtors 12,000
Taxation:
Investments (Short-term) 4,000
Current 4,000
Cash in hand 12,000
Future 4,000
Profit and Loss A/c 12,000
1,20,000
1,20,000
From the above, compute a) the Current Ratio, b) Quick Ratio, c) Debt-Equity Ratio, and d) Proprietary Ratio.
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