Gross profit Required: Calculate the following ratios for 2014 and 2015. When data limitations prohibit computing averages, use year-end balances in your calculation. 0 Return on investment Return on equity Acid-test ratio Working capital 6 Accounts receivable turnover 6 Inventory turnover Ans: 3.91% and 11.49%; 6.08% and 17.17% Rs. 104,000 and Rs. 127,500 0.58 and 0.68 1.05 times and 1.25 times 68.11 times and 58.29 times

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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19. 2016 (Make up) Q.No. 5
The balance sheet of as on 31st December 2014 and 2015 are given below.
Balance Sheets as of December 31
Assets
Current assets:
Cash
Account receivable
Inventories
Total current assets
Plant and equipment (net)
Total assets
2015
Rs. 6,500-
51,000
155,000
212,500
187,500
Rs. 400,000
2014
Rs. 11,500
49,000
147,000
208,000
177,000
Rs. 385,000
Transcribed Image Text:19. 2016 (Make up) Q.No. 5 The balance sheet of as on 31st December 2014 and 2015 are given below. Balance Sheets as of December 31 Assets Current assets: Cash Account receivable Inventories Total current assets Plant and equipment (net) Total assets 2015 Rs. 6,500- 51,000 155,000 212,500 187,500 Rs. 400,000 2014 Rs. 11,500 49,000 147,000 208,000 177,000 Rs. 385,000
ACC 519: ACCOUNTING FOR FINANCIAL AND MANAGERIAL DECISION
Liabilities and equity:
Liabilities
Current liabilities
Account payable
Others
Total current liabilities
Bonds payable
Total liabilities
Stockholders' equity
Common stock (50,000 shares, Rs. 3 par)
Paid-in capital in excess of par
Retained earnings
Total stockholders' equity
Total liabilities and stockholder's equity
Other information:
Rs. 60,000
25,000
85,000
100,000
185,000
150,000
20,000
45,000
Working capital
6
6 Inventory turnover
Ans: 3.91% and 11.49%; 6.08% and 17.17%
215,000
Rs. 400,000
2015
Rs. 315,000
40%
Rs. 81,500
22,500
104,000
100,000
204,000
150,000
20,000
11,000
181,000
Rs. 385,000
2014
Rs. 259,000
40%
Revenue (Sales)
Gross profit
Required: Calculate the following ratios for 2014 and 2015. When data
limitations prohibit computing averages, use year-end balances in
your calculation.
0 Return on investment
Return on equity
Acid-test ratio
Accounts receivable turnover
Rs. 104,000 and Rs. 127,500 0.58 and 0.68
1.05 times and 1.25 times 68.11 times and 58.29 times
Transcribed Image Text:ACC 519: ACCOUNTING FOR FINANCIAL AND MANAGERIAL DECISION Liabilities and equity: Liabilities Current liabilities Account payable Others Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (50,000 shares, Rs. 3 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity Total liabilities and stockholder's equity Other information: Rs. 60,000 25,000 85,000 100,000 185,000 150,000 20,000 45,000 Working capital 6 6 Inventory turnover Ans: 3.91% and 11.49%; 6.08% and 17.17% 215,000 Rs. 400,000 2015 Rs. 315,000 40% Rs. 81,500 22,500 104,000 100,000 204,000 150,000 20,000 11,000 181,000 Rs. 385,000 2014 Rs. 259,000 40% Revenue (Sales) Gross profit Required: Calculate the following ratios for 2014 and 2015. When data limitations prohibit computing averages, use year-end balances in your calculation. 0 Return on investment Return on equity Acid-test ratio Accounts receivable turnover Rs. 104,000 and Rs. 127,500 0.58 and 0.68 1.05 times and 1.25 times 68.11 times and 58.29 times
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