ABC Company Ltd provides you following information and balance sheet on 31 December:Balance SheetAssetsLiabilitiesAmountAmountEquity shares capital @ Rs 1006% Preference shares capital200,000 Fixed assets475,00050,000 Long term investment50,000 Other quick assets180,000 Closing stock180,000 Preliminary expenses50,0008% Debentures135,000Current liabilities20,000General reserve10,000P&L account last year131,750 Account receivable157,500P&L account current year55,750847,500847,500Other information:Fixed assets turnover ratio was 3 times for the year.Net profit margin before interest and tax was 10% opening stock sales.Company is within 50% tax brackets.Working days during the year was 360 days.Required: (a) Amount of sales; (b) Net profit after tax; (c) Average collection period; (d) Current ratio;Ve) Quick ratio; (f) Debt equity ratio; (8) Return on shareholders' equity

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ABC Company Ltd provides you following information and balance sheet on 31 Decem Balance Sheet Liabilities Amount Assets Equity shares capital @ Rs 100 6% Preference shares capital 200,000 Fixed assets 50,000 Long term investment 50,000 Other quick assets 180,000 Closing stock 180,000 Preliminary expenses 131,750 Account receivable 8% Debentures Current liabilities General reserve P&L account last year P&L account current year 55,750 847,500 Other information: Fixed assets turnover ratio was 3 times for the year. Net profit margin before interest and tax was 10% opening stock sales. Company is within 50% tax brackets. Working days during the year was 360 days. Required: (a) Amount of sales; (b) Net profit after tax; (c) Average collection period;

ABC Company Ltd provides you following information and balance sheet on 31 Decem Balance Sheet Liabilities Amount Assets Equity shares capital @ Rs 100 6% Preference shares capital 200,000 Fixed assets 50,000 Long term investment 50,000 Other quick assets 180,000 Closing stock 180,000 Preliminary expenses 131,750 Account receivable 8% Debentures Current liabilities General reserve P&L account last year P&L account current year 55,750 847,500 Other information: Fixed assets turnover ratio was 3 times for the year. Net profit margin before interest and tax was 10% opening stock sales. Company is within 50% tax brackets. Working days during the year was 360 days. Required: (a) Amount of sales; (b) Net profit after tax; (c) Average collection period;

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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