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From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio,

From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio,

FINANCIAL ACCOUNTING
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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The Balance Sheet of Punjab Auto Limited as on 31-12-2002 was as follows: Particular Rs. Particular Rs. Equity Share Capital Capital Reserve 8% Loan on Mortgage 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 | Furniture & Fixtures 16,000 | Stock 4,000 Debtors 24,000 40,000 16,000 12,000 12,000 Creditors Bank overdraft Taxation: Investments (Short-term) 4,000 Current 4,000 Cash in hand 12,000 Future 4,000 Profit and Loss A/c 12,000 1,20,000 1,20,000 From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, and (d) Proprietary Ratio.
Transcribed Image Text:The Balance Sheet of Punjab Auto Limited as on 31-12-2002 was as follows: Particular Rs. Particular Rs. Equity Share Capital Capital Reserve 8% Loan on Mortgage 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 | Furniture & Fixtures 16,000 | Stock 4,000 Debtors 24,000 40,000 16,000 12,000 12,000 Creditors Bank overdraft Taxation: Investments (Short-term) 4,000 Current 4,000 Cash in hand 12,000 Future 4,000 Profit and Loss A/c 12,000 1,20,000 1,20,000 From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, and (d) Proprietary Ratio.
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