Selected Financial information related to ABC Pvt. Ltd. are presented below: In Rupees (Rs.) 2021 2022 Sales 69,000 43,000 Cost of Goods Sold 57,000 32,500 Debtors 7,200 3,000 Inventories 11,400 5,500 Cash 1,500 800 Other Current Assets 4,000 2,700 Current Liabilities 16,000 11,000 You are required to compute the Current ratio, Quick ratio, Average debt collection period and Inventory Turnover ratio for the year 2022. At the beginning of year 2021, the company had debtors of Rs. 2,500 and inventories of Rs. 3.000.

Selected Financial information related to ABC Pvt. Ltd. are presented below: In Rupees (Rs.) 2021 2022 Sales 69,000 43,000 Cost of Goods Sold 57,000 32,500 Debtors 7,200 3,000 Inventories 11,400 5,500 Cash 1,500 800 Other Current Assets 4,000 2,700 Current Liabilities 16,000 11,000 You are required to compute the Current ratio, Quick ratio, Average debt collection period and Inventory Turnover ratio for the year 2022. At the beginning of year 2021, the company had debtors of Rs. 2,500 and inventories of Rs. 3.000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Selected Financial information related to ABC Pvt. Ltd. are presented below:
In Rupees (Rs.)
2021
2022
Sales
69,000
43,000
Cost of Goods Sold
57,000
32,500
Debtors
7,200
3,000
Inventories
11,400
5,500
Cash
1,500
800
Other Current Assets
4,000
2,700
Current Liabilities
16,000
11,000
You are required to compute the Current ratio, Quick ratio, Average debt collection
period and Inventory Turnover ratio for the year 2022. At the beginning of year 2021,
the company had debtors of Rs. 2,500 and inventories of Rs. 3,000.

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