Question

Current ratio 2.5 Liquidity ratio 1.5 Net working capital `3,00,000 Fixed assets turnover ratio (on cost of sales) 2 times Average debt collection period 2 months Stock turnover ratio (cost of sales/closing stock) 6 times Gross profit ratio 20% Fixed assets/shareholders net worth 0.80 Reserve and surplus/capital 0.50 Draw up the balance sheet of the company XYZ Ltd.

Answer 1

Current ratio 2.5
Liquidity ratio 1.5
Net working capital ` 3,00,000
Fixed assets turnover ratio (on cost of sales) 2 times
Average debt collection period 2 months
Stock turnover ratio (cost of sales/closing stock) 6 times
Gross profit ratio 20%
Fixed assets/shareholders net worth 0.80
Reserve and surplus/capital 0.50
Draw up the balance sheet of the company XYZ Ltd