Following items are taken out of Balance Sheet of A&B Co Ltd. a) Cash Rs. 20,000
ID: 2662079 • Letter: F
Question
Following items are taken out of Balance Sheet of A&B Co Ltd.
a) Cash Rs. 20,000
b) Account receivable Rs. 100,000
c) Account payable Rs. 350,000
d) Notes payable Rs. 250,000
e) Inventory Rs. 300,000
f) Long term debt Rs. 500,000
g) Furniture Rs.1,500,000
h) Common Stock Rs 5,00,000
i) Retained Earnings Rs.3,20,000
j) Earning before interest and tax Rs 600,000
k) Company paid interest Rs.140,000
From the given data find out following ratios:
1. Total debt ratio
2. Cash Ratio
3. Acid test Ratio
4. Current ratio
QUESTION # 2 :
From the given information of XYZ.Co LTD. Prepare a Cash flow statement for the
year 2009.
2009 2008
(Rs.) (Rs.)
Net Income after taxes 180,000
Earnings available for common stockholders 170,000
Depreciation Expenses 100,000
Cash 600,000 300,000
Marketable Securities 700,000 200,000
Accounts Receivable 400,000 500,000
Increase in the Furniture and fixture in the
year 2008-2009 80,000
Vehicles 100,000 80,000
Inventories &nb
Explanation / Answer
2. Cash Ratio = Cash Equivelents + Cash / CurrentLiabilities
= Cash Equivelents + Cash / Accurals + AccountsPayables +Notes Payable
3. Acid test Ratio: Current Assets - Inventories /Current Liabilities