Calculate the following ratios from balance sheet statement for any organization: • Current ratio • Debt ratio • Quick ratio • Equity multiplier • Debt to equity ratio
Calculate the following ratios from balance sheet statement for any organization: • Current ratio • Debt ratio • Quick ratio • Equity multiplier • Debt to equity ratio
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 36BE: Analyzing Fixed Assets Pitt reported the following information for 2018 and 2019: Required: Compute...
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Question
Calculate the following ratios from
•
• Debt ratio
• Quick ratio
• Equity multiplier
• Debt to equity ratio
![Statement of financial position as at 31 December 2019
Notes
31 December
31 December
2019
2018
RO
RO
ASSETS
Non-current assets
Property, plant and equipment
5
14,352,670
15,813,557
Right-of-use asset
6
600,694
Fair value through other comprehensive income
investments
7
2,228,707
1,757,086
Total non-current assets
17,182,071
17,570,643
Current assets
Debt instruments at amortised cost
8
11,019,390
9,078,075
Inventories
9.
4,661,428
5,374,929
8,297,403
Trade and other receivables
10
8,339,499
800,314
23,550,721
Cash and cash equivalents
11
1,480,732
25,501,049
Total current assets
Total assets
42,683,120
41,121,364
EQUITY AND LIABILITIES
Capital and reserves
Share capital
12
29,621,368
29,621,368
Legal reserve
13
6,665,959
6,463,472
Retained earnings
2,052,872
2,007,775
Equity investment reserve
(1,004,521)
(622,772)
37,717,427
Total capital and reserves
37,088,094
Non-current liabilities
Non-current portion of lease liabilities
6
490,476
Employees' benefits liability
17
768,488
399,110
938,425
Deferred tax liability
25
393,303
Total non-current liabilities
1,658,074
1,331,728
Current liabilities
Current portion of lease liabilities
6
124,624
Trade and other payables
15
2,768,153
2,524,711
Income tax payable
25
414,842
176,831
Total current liabilities
3,307,619
2,701,542
Total equity and liabilities
42,683, 120
41,121,364
Net assets per share (RO)
26
0.127
0.125](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F33aa61d9-49fb-416a-aaaf-90664769e403%2F0dabab01-25ec-4ec7-be44-328d7dae43e4%2Fjog3vv_processed.png&w=3840&q=75)
Transcribed Image Text:Statement of financial position as at 31 December 2019
Notes
31 December
31 December
2019
2018
RO
RO
ASSETS
Non-current assets
Property, plant and equipment
5
14,352,670
15,813,557
Right-of-use asset
6
600,694
Fair value through other comprehensive income
investments
7
2,228,707
1,757,086
Total non-current assets
17,182,071
17,570,643
Current assets
Debt instruments at amortised cost
8
11,019,390
9,078,075
Inventories
9.
4,661,428
5,374,929
8,297,403
Trade and other receivables
10
8,339,499
800,314
23,550,721
Cash and cash equivalents
11
1,480,732
25,501,049
Total current assets
Total assets
42,683,120
41,121,364
EQUITY AND LIABILITIES
Capital and reserves
Share capital
12
29,621,368
29,621,368
Legal reserve
13
6,665,959
6,463,472
Retained earnings
2,052,872
2,007,775
Equity investment reserve
(1,004,521)
(622,772)
37,717,427
Total capital and reserves
37,088,094
Non-current liabilities
Non-current portion of lease liabilities
6
490,476
Employees' benefits liability
17
768,488
399,110
938,425
Deferred tax liability
25
393,303
Total non-current liabilities
1,658,074
1,331,728
Current liabilities
Current portion of lease liabilities
6
124,624
Trade and other payables
15
2,768,153
2,524,711
Income tax payable
25
414,842
176,831
Total current liabilities
3,307,619
2,701,542
Total equity and liabilities
42,683, 120
41,121,364
Net assets per share (RO)
26
0.127
0.125
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