Question

Time allowed: 1 HourMaximum marks: 12
1. (a) A Ltd. and B Lid require a bank loan for three years. Following information is given to
you
Current Ratio
26:1
2.1
Liquid Ratio
13.1
1.1
Debt Equity Ratio
1.1
13:1
Interest Coverage Ratio
15 times
10 times
As a bank manager whom will you grant loan, if only one company is to be selected?
(b) Following Information is available for the year 2014, calculate the Gross profit Ratio.
Cash Revenue from Operations 25,000
Cash Purchases15,000
Credit Purchases 20,000
CarlageInwards 2,000
Salaries25 000
Changes in Inventory 10,000
Return Inwards 2,000
Wages 5,000
Ratio of Cash Revenue from Operations and Credit Revenue from Operations is 1:3
(3+3=6)​

Answer 1

5272

6273

7182

6636

6267636477

2552536

Explanation:

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