ABC LTD PQR LTD - Ratios to be computed
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BALANACE SHEET
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As at Decemeber 31, 2011
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ABC LTD
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PQR LTD
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FIXED ASSETS
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Equipment at Cost
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25,000
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50,000
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Less: Depreciation
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20,000
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5,000
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15,000
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35,000
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Curent Assets
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Inventory
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37,500
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43,750
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Accounts Receivable
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62,500
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50,000
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Cash At Bank
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12,500
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6,250
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1,12,500
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1,00,000
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Less: Current Liabilites
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12,500
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1,00,000
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25,000
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75,000
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Total Assets
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1,05,000
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1,10,000
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Financed By
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Capital B/f
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95,000
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90,000
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Add: Net Profit
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25,000
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37,500
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1,20,000
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1,27,500
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Less: Drawings
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15,000
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17,500
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1,05,000
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1,10,000
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TRADING AND PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED DECEMBER 31, 2011
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ABC LTD
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PQR LTD
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Sales Revenue
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2,00,000
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3,00,000
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Less: Cost of goods sold
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Opening Inventory
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62,500
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56,250
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Add: Purchases
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1,25,000
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2,27,500
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1,87,500
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2,83,750
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Less: Closing Inventory
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37,500
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1,50,000
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43,750
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2,40,000
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Gross Profit
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50,000
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60,000
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Less: Depreciation
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2,500
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7,500
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Other expense
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22,500
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25,000
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15,000
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22,500
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Net Profit
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25,000
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37,500
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Ratios to be computed:
a. Gross Profit as percentage to sales
b. Net profit as percentage of sales
c. Expenses as percentage to sales
d. Current Ratio
e. Acid test ratio
f. Stock turnover ratio
g. Debtors (Accounts receivable) - sales ratio
h. Return (Net profit) on Capital employed
i. Net working capital
j. Net working capital to total assets ratio