ratio of 1.66 is more than two times to the norm of 0.75. The company has to think about reducing the excess liquidity. Illustration 20 Erom the following balance sheet of Balaji Industries Ltd., you are required to calculate debt equity ratio. Balance Sheet as at 31-12-1999 Liabilities Rs. Assets Rs. Share capital : 10,000 shares of Rs. 10 each Fixed assets 1,20,000 1,00,000 Current assets 12,000 80,000 General reserve P&LA/c 8,000 Debentures 30,000 Current liabilities 50,000 2,00,000 2,00,000

Q: Describe the three-step process for estimating WACC.

A:

Q: Define the term Current ratio with example.

A: Ratio analysis: It is the financial analysis tool for measuring the profitability, liquidity,…

Q: Define each of the following terms: d. Modified internal rate of return (MIRR) method

A: Modified Internal Rate of Return (MIRR): The modified internal rate of return (MIRR) method…

Q: Define Vertical analysis.

A: Financial statement analysis   Financial statement analysis are analyzed to understand the…

Q: can you now calculate the gross profit ?

A: Gross profit can be defined as the net sales revenue earned by business over a particular period of…

Q: Define Average collection period.

A: Definition:   Accounts receivable turnover: This is the ratio which analyzes the number of times…

Q: Write up a transaction analysis chart from the given transaction.

A: Transaction analysis is the summary chart of all the transactions occurred during the month. The…

Q: Descriptive statistics consists of methods for organizing, displaying, and describing data by using…

A: A data set in original form usually very large, consequently such data is not very helpful in…

Q: Explain the effect of compensating balance with example.

A: Compensating Balance Compensating Balance is refer as the minimum amount of the money which are…

Q: Describe standards for comparisons in analysis.

A: Financial statement analysis: Financial statement analysis is a valuable measure for evaluating…

Q: Define each of the following terms:c. Compressed adjusted present value (CAPV) model

A: The net present value (NPV) of the project or any sort of investment opportunity that is financed…

Q: Define the term Time-based methods.

A: Allocation method: It is a method in which allocation base is expected to be consumed during the…

Q: The Financial position graph is suitable for Select one: O a. Data Input O b. Data Process O c.…

A: Financial Position depicts the position and status of recorded assets, liabilities, and equity of…

Q: Explain when to use the single-period model and when to use a multi-period model.

A: The difference between the two models is that the multi-period model may involve the stock leftovers…

Q: Could you please show the breakdown of NPV calculation for each fraction

A: Net Present Value: It represents a profitability measure for an investment or a project. The…

Q: Explain quick ratio

A: The formula to compute quick ratio as follows:

Q: based on the above exercice - On the basis of the data provided at question 6, calculate your…

A: Levered IRR is the Internal Rate of return calculated on the basis of levered free after tax cash…

Q: differentiate and give illustrations of the difference between FIFO and Weighted Average.

A: Inventory Valuation - There are three method using which company can value their inventory a. FIFO…

Q: Calculate the current ratio

A: The current ratio is the ratio of current assets to the current liabilities. It shows the ability of…

Q: Define current ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Why are denormalized tables used in data ware-houses?

A: Data Warehouse:   Data warehouse is also termed as enterprise data warehouse. It can be defined as…

Q: Describe the concept of an equivalent unit and how to compute equivalent units

A:

Q: Explain retention ratio

A: Retention Ratio represents the percentage of profits retained by a Company. The Retention ratio…

Q: Define descriptive and inferential statistics.

A: Descriptive Statistics: Analysis of data that helps in describing, showing or summarizing data in a…

Q: scuss in detail Five benefits and dra

A: Accounting : Accounting means to keep the records and prepared the financial statements to know…

Q: Define Current Receivables.

A: Current receivables are recorded under current assets of the company.

Q: liquidity ratio

A: INTRODUCTION   It is a ratio which the capability of a company to pay off its debts as and when they…

Q: explain what is The current ratio with a comprehensive example.

A: The objective of this question is to understand the concept of the current ratio, which is a key…

Q: How is the Quick Ratio calculated?

A: Definition:   Quick ratio: The financial ratio which evaluates the ability of a company to pay off…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.