Question

6. The Balance Sheet of PQR Ltd is given below:

Calculate and write the formula of following ratios in appropriate cells in MS-Excel

Current Ratio, Quick Ratio, Debt-Equity Ratio, Proprietary Ratio and Fixed Assets Ratio.

A B C D E

1 Loan amount 5000000

2 Rate of

interest

12% P.A.

3 Time 5 Years

4 Effective rate

of interest

?

5 Total

Instalments

?

6 Instalment ?

7 Payment No. Opening

balance

Interest Instalment Closing

balance

8 1 ? ? ? ?

9 2 ? ? ? ?

10 3 ? ? ? ?

11 4 ? ? ? ?

12 5 ? ? ? ?

A B C D

1 BALANCE SHEET OF PQR LTD

2 Liabilities Amount Assets Amount

3 Equity Share Capital 15,00,000 Land and Building 8,00,000

4 Preference Shares 5,00,000 Plant and Machinery 9,00,000

5 Debentures 10,00,000 Stock 6,00,000

6 Sundry Creditors 3,00,000 Cash 2,80,000

7 Bills Payable 1,00,000 Debtors 7,00,000

8 Prepaid expenses 1,20,000

9 TOTAL 34,00,000 TOTAL 34,00,000

10

11 FORMULA RESULT

12 Current Ratio ? ?

13 Quick Ratio ? ?

14 Debt-Equity Ratio ? ?

15 Proprietary Ratio ? ?

16 Fixed Assets Ratio ? ?​

Answer 1

Answer:

The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations. It compares a firm's current assets to its current liabilities, and is expressed as follows: The current ratio is an indication of a firm's liquidity

Answer 2

Answer:

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