S Ltd. Has equity of Rs.6Lacs issued at par. The following additional informationis provided:re.eFixed assets to current assets ratio is 1:2.Dividend payout is twice the growth rate in sales.Profit margin is 40% of growth rate in sales.You are required to construct the balance sheet and project the externalfunds requirement..Sales to net worth ratio is 5Growth rate in sales for the next year is 25%Long-terms loans are 1.5 times the retained earnings.Outstanding creditors are half long-term loans.Short-term bank borrowings are equals to outstanding creditors.Current assets are Rs.12Lacs.

Please find attachment below In step 2 balence sheet with working notes

S Ltd. Has equity of Rs.6Lacs issued at par. The following additional information is provided: r . . Sales to net worth ratio is 5 is Growth rate in sales for the next year is 25% Long-terms loans are 1.5 times the retained earnings. Outstanding creditors are half long-term loans. Short-term bank borrowings are equals to outstanding creditors. Current assets are Rs.12Lacs

S Ltd. Has equity of Rs.6Lacs issued at par. The following additional information is provided: r . . Sales to net worth ratio is 5 is Growth rate in sales for the next year is 25% Long-terms loans are 1.5 times the retained earnings. Outstanding creditors are half long-term loans. Short-term bank borrowings are equals to outstanding creditors. Current assets are Rs.12Lacs

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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