Problem no 19, (Ref. 3)
The following are the financial statements of Bagmati Bitumin Limited.
Bagmati Bitumin Limited
|
Assets |
2016 |
2017 |
Liabilities and Equity |
2016 |
2017 |
|
Cash Accounts receivable Inventory |
Rs 650 2,382 4,408 |
Rs 710 2,106 4,982 |
Accounts payable Notes payable Other |
Rs 987 640 90 |
Rs 1215 718 230 |
|
Total current assets |
Rs 7,440 |
Rs 7,798 |
Total current liabilities Long–term debt |
Rs 1,717 4,318 |
Rs 2,163 4,190 |
|
Fixed assets |
Rs 13,992 |
Rs 18,584 |
Total debt |
Rs 6,035 |
Rs 6,353 |
|
|
|
|
Owners’ equity (1,250 shares outstanding) |
Rs 15,397 |
Rs 20,029 |
|
Total assets |
Rs 21,432 |
Rs 26,382 |
Total liabilities and equity |
Rs 21,432 |
Rs 26,382 |
Bagmati Bitumin Limited
Income Statement for the Year Ended December 31, 2017
|
Sales Cost of goods sold Depreciation |
Rs 28,000 11,600 2,140 |
|
Earnings before interest and taxes Interest paid |
Rs 14,260 980 |
|
Taxable income Taxes @ 35% |
Rs 13,280 4,648 |
|
Net Income |
Rs 8,632 |
|
Dividends Addition to Market price for a share of stock |
Rs 4,000 Rs 4,632 Rs 63 |
Calculate:
(a) Current ratio (b) Quick ratio
(c) Total assets turnover (d) Inventory turnover
(e) Receivables turnover (f) Total liabilities to assets ratio
(g) Debt–equity ratio (h) Equity multiplier
(i) Times interest earned ratio (j) Profit margin
(k)
(m) Price earnings ratio (n) Dividends per share
(o) Market–to–book ratio
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