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Solve the below problem with the help of required ratio formulas and comment on the company’s position. the sub parts to be solved.

Solve the below problem with the help of required ratio formulas and comment on the company’s position. the sub parts to be solved.

Essentials Of Investments
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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Solve the below problem with the help of required ratio formulas and comment on the company’s position.

the sub parts to be solved.

The Balance Sheet of Punjab Auto Limited as on 31-12-2002 was as follows: Particular Equity Share Capital Capital Reserve 8% Loan on Mortgage Rs. Particular Rs. 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 Furniture & Fixtures 16,000 Stock 4,000 Debtors 24,000 40,000 16,000 12,000 Creditors Bank overdraft 12,000 Taxation: Investments (Short-term) 4,000 4,000 Cash in hand 4,000 12,000 1,20,000 Current 12,000 Future Profit and Loss A/c 1,20,000 From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, and (d) Proprietary Ratio.
Transcribed Image Text:The Balance Sheet of Punjab Auto Limited as on 31-12-2002 was as follows: Particular Equity Share Capital Capital Reserve 8% Loan on Mortgage Rs. Particular Rs. 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 Furniture & Fixtures 16,000 Stock 4,000 Debtors 24,000 40,000 16,000 12,000 Creditors Bank overdraft 12,000 Taxation: Investments (Short-term) 4,000 4,000 Cash in hand 4,000 12,000 1,20,000 Current 12,000 Future Profit and Loss A/c 1,20,000 From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, and (d) Proprietary Ratio.
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