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    Course - Cost & Management Accounting: Problem

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    Lovely Lenin
    From the financial statements provided for Juliet & Company: 1) Current ratio decreased from 2.4 in 2012 to 2.33 in 2013, quick ratio decreased from 2.2 to 2.33, debt equity ratio increased from 0.75 to 0.77. 2) Debtors turnover ratio was 10 times, inventory turnover ratio was 6 times, and sales ratios were current assets to sales ratio of 0.47 and fixed assets to sales ratio of 0.3.

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    Course - Cost & Management Accounting: Problem

    Uploaded by

    Lovely Lenin
    35 views2 pages
    From the financial statements provided for Juliet & Company: 1) Current ratio decreased from 2.4 in 2012 to 2.33 in 2013, quick ratio decreased from 2.2 to 2.33, debt equity ratio increased from 0.75 to 0.77. 2) Debtors turnover ratio was 10 times, inventory turnover ratio was 6 times, and sales ratios were current assets to sales ratio of 0.47 and fixed assets to sales ratio of 0.3.

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    charran

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    From the financial statements provided for Juliet & Company: 1) Current ratio decreased from 2.4 in 2012 to 2.33 in 2013, quick ratio decreased from 2.2 to 2.33, debt equity ratio increased from 0.75 to 0.77. 2) Debtors turnover ratio was 10 times, inventory turnover ratio was 6 times, and sales ratios were current assets to sales ratio of 0.47 and fixed assets to sales ratio of 0.3.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    35 views2 pages

    Course - Cost & Management Accounting: Problem

    Uploaded by

    Lovely Lenin
    From the financial statements provided for Juliet & Company: 1) Current ratio decreased from 2.4 in 2012 to 2.33 in 2013, quick ratio decreased from 2.2 to 2.33, debt equity ratio increased from 0.75 to 0.77. 2) Debtors turnover ratio was 10 times, inventory turnover ratio was 6 times, and sales ratios were current assets to sales ratio of 0.47 and fixed assets to sales ratio of 0.3.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Course – Cost & Management Accounting

    Class- II year B.Com.LL.B ( Hons) Date – 08.05.2020

    Assignment - III
    RATIO ANALYSIS

    Problem - From the following statements, calculate Current Ratio, Debt Equity Ratio, Quick Ratio,
    Debtors Turnover Ratio, Inventory Turnover Ratio, Sales Ratios.
    Condensed Income Statement of Juliet & Company
    for year ending March 31, 2013
    (in ` ‘000)
    ` % sales
    Net Sales 600 100.0
    Less: Cost of goods sold 360 60.0
    Gross Profit 240 40.0
    Operating Profit 84 14.0
    Interest 8 1.3
    Income before tax 76 12.7
    Income tax provision 38 6.4
    Net Income after tax for the year 38 6.3

    Balance Sheet of Julient & Co.


    (as on March 31, 2012 and 2013)
    (in ` ‘000)
    March 31, March 31,
    2012 2013
    Assets:
    Current Assets:
    Cash 60 80
    Account receivables (net) 60 60
    Inventories 100 120
    Pre-paid expenses 20 20
    Total Current Assets 240 280
    Fixed Assets:
    Land 60 60
    Building and structures 240 240
    Less: Accumulated depreciation 120 140
    Net Buildings structures 120 100
    Total Fixed Assets 180 160

    1
    Other Assets:
    Goodwill and patents  20
    Total Assets 420 460
    Liabilities and Equities
    Current Liabilities:
    Accounts payable 50 60
    Wages and taxes outstanding 30 20
    Income-tax payable 20 40
    Total Current Liabilities 100 120
    Long-term Liabilities:
    10% Mortgage Debentures 80 80
    Total Liabilities 180 200
    Shareholders’ Equity:
    Share capital (6,000 shares of `20 each fully paid) 120 120
    Retained earnings 120 140
    Total Shareholders’ Equity 240 260
    Total Liabilities and Equities 420 460

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