13. Following data relate to the financial statements of Moon Ltd. for the yearended 31st March, 2016 :Current RatioWorking CapitalAcid Test RatioInventory turnover ratio (basedon average cost ofopening and closing inventory)G.P. Ratio2.5:1$ 45,000Debt Collection PeriodCreditors VelocityNominal value per shareNo. of shares allotted36 days54 days$ 5.0025,0001.4 :1Fixed Assets : Shareholders Equity(Fund)Operating Ratio(Operating Expenses : Sales)No. of working days in the year5 times0.7:140%Earning per shareEarning for the year as percentageof Share CapitalThere are no deferred expenses, prepaid expenses, long term liabilities and intangible assets. Openingstock was less by $ 4,000 than closing stock. All sales and purchases are credit sales and credit purchasesrespectively.You are required to prepare Statement of Profit & Loss for the year ended 31st March, 2016 andBalance Sheet as on that date. Working will form part of your answer.$1.0090%36025%

1)Current ratio = Current assets/Current liabilities = 2.5:1 Current assets= 2.5 current liabilities…

13. Following data relate to the financial statements of Moon Ltd. for the year ended 31st March, 2016 : Current Ratio Working Capital Acid Test Ratio Inventory turnover ratio (based on average cost of opening and closing inventory) G.P. Ratio Earning per share Earning for the year as percentage of Share Capital There are no deferred expenses, prepaid expenses, long term liabilities and intangible assets. Opening stock was less by $ 4,000 than closing stock. All sales and purchases are credit sales and credit purchases respectively. You are required to prepare Statement of Profit & Loss for the year ended 31st March, 2016 and Balance Sheet as on that date. Working will form part of your answer. 2.5:1 $ 45,000 Debt Collection Period Creditors Velocity Nominal value per share No. of shares allotted 36 days 54 days $ 5.00 25,000 1.4:1 Fixed Assets : Shareholders Equity (Fund) Operating Ratio (Operating Expenses : Sales) No. of working days in the year 5 times 0.7:1 40% $1.00 90% 360 25%

13. Following data relate to the financial statements of Moon Ltd. for the year ended 31st March, 2016 : Current Ratio Working Capital Acid Test Ratio Inventory turnover ratio (based on average cost of opening and closing inventory) G.P. Ratio Earning per share Earning for the year as percentage of Share Capital There are no deferred expenses, prepaid expenses, long term liabilities and intangible assets. Opening stock was less by $ 4,000 than closing stock. All sales and purchases are credit sales and credit purchases respectively. You are required to prepare Statement of Profit & Loss for the year ended 31st March, 2016 and Balance Sheet as on that date. Working will form part of your answer. 2.5:1 $ 45,000 Debt Collection Period Creditors Velocity Nominal value per share No. of shares allotted 36 days 54 days $ 5.00 25,000 1.4:1 Fixed Assets : Shareholders Equity (Fund) Operating Ratio (Operating Expenses : Sales) No. of working days in the year 5 times 0.7:1 40% $1.00 90% 360 25%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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