Required: Calculate following RatiosI)II)III)IV)Current RatioAcid Test RatioLong term Debt to Equity RatioInventory Turnover Ratio Q NO.3:Balance SheetLiabilitiesShareholders Equity(50,000 shares)Long-term DebtAccount PayableAmountAssets| Amount3,50,00025,00060,00065,0003,00,000 Long-term AssetsCash1,00,000 Accounts Receivables80,000 Inventory20,0005,00,000Other Current Liabilities5,00,000Income StatementParticularsАmount9,00,0004,00,0001,00,0002,50,0001,50,000SalesCost of Goods SoldGeneral, Administrative and Selling ExpensesOther ExpensesNet Income (PAT)

Answer and calculations are given below

Answered: Required: Calculate following Ratios I)…

Required: Calculate following Ratios I) Current Ratio I) Acid Test Ratio II) IV) Long term Debt to Equity Ratio Inventory Turnover Ratio

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Required: Calculate following Ratios
I)
II)
III)
IV)
Current Ratio
Acid Test Ratio
Long term Debt to Equity Ratio
Inventory Turnover Ratio

Q NO.3:
Balance Sheet
Liabilities
Shareholders Equity
(50,000 shares)
Long-term Debt
Account Payable
Amount
Assets
| Amount
3,50,000
25,000
60,000
65,000
3,00,000 Long-term Assets
Cash
1,00,000 Accounts Receivables
80,000 Inventory
20,000
5,00,000
Other Current Liabilities
5,00,000
Income Statement
Particulars
Аmount
9,00,000
4,00,000
1,00,000
2,50,000
1,50,000
Sales
Cost of Goods Sold
General, Administrative and Selling Expenses
Other Expenses
Net Income (PAT)

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