1. Following figures are available from the accounts of a large industrial unit. Compute relevant ratios to assess the efficiency of working capital management for 2018 and 2019
1. Following figures are available from the accounts of a large industrial unit. Compute relevant ratios to assess the efficiency of working capital management for 2018 and 2019
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Following figures are available from the accounts of a large industrial unit.
Compute relevant ratios to assess the efficiency of working capital management
for 2018 and 2019
(Rs Crores)
Particulars
2017
2018
2019
Inventories
50
52.5
65
Debtors
67
57
77
Other current assets
5
15
20
Cash and bank balances
30
10
15
Total
152
134.5
177
Current liabilities
52
54.5
72
Net working capital
Sales
Total assets
100
80
105
300
300
340
220
200
240
2. From the following details prepare a statement of proprietary fund with as many
details as possible.
1) Stock velocity 6
Expert Solution
Step 1
Working capital:
Working capital can be defined as the measure of financial performance of the company. It reflects the liquidity of the company. It is difference between the current assets and the current liabilities of the company. It represents amount of cash that can be expensed by the company is order to remain liquid.
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