Market price of Rajasthan Auto"s share is 180RS and the company has decleared divident of 36 Rs. Per share From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, and (d)Proprietary Ratio (E )P/E Ratio
Market price of Rajasthan Auto"s share is 180RS and the company has decleared divident of 36 Rs. Per share From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, and (d)Proprietary Ratio (E )P/E Ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solutions to all the ratios
![Q4.The Balance Sheet of Rajasthan Auto Limited as on 31-12-2020 was as follows:
Particular
Rs.
Particular
Rs.
Equity Share Capital
Capital Reserve
8% Loan on Mortgage
Creditors
80,000
16,000
Plantand Machinery
Land and Buildings
48,000
80,000
32,000
24,000
24,000
8,000
64,000
32,000
8,000
Furniture & Fixtures
Stock
Bank overdraft
Debtors
Investments (Short-term)
Cash in hand
Тахation:
Current
8,000
8,000
24,000
Future
24,000
Profit and Loss A/c
2,40,000
2,40,000
Market price of Rajasthan Auto"s share is 180RS and the company has decleared divident of 36 Rs. Per
share
From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, and
(d)Proprietary Ratio (E )P/E Ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F611df1d7-534a-4d80-81f2-c14964b08b47%2F9c03c003-b976-4621-b3ed-239c391f4fdf%2Foptx4r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q4.The Balance Sheet of Rajasthan Auto Limited as on 31-12-2020 was as follows:
Particular
Rs.
Particular
Rs.
Equity Share Capital
Capital Reserve
8% Loan on Mortgage
Creditors
80,000
16,000
Plantand Machinery
Land and Buildings
48,000
80,000
32,000
24,000
24,000
8,000
64,000
32,000
8,000
Furniture & Fixtures
Stock
Bank overdraft
Debtors
Investments (Short-term)
Cash in hand
Тахation:
Current
8,000
8,000
24,000
Future
24,000
Profit and Loss A/c
2,40,000
2,40,000
Market price of Rajasthan Auto"s share is 180RS and the company has decleared divident of 36 Rs. Per
share
From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, and
(d)Proprietary Ratio (E )P/E Ratio
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