1. From the following information prepare balance sheet:
|
|
|
Rs. |
|
Current ratio |
2.5 Working capital |
60,000 |
|
Liquidity ratio |
1.5 Reserves and surplus |
40,000 |
|
Proprietary ratio |
|
|
|
(fixed assets/ |
|
|
|
proprietory fund) |
0.75 Bank overdraft |
10,000 |
There is no long term loan or fictitious asset.
Syntex Limited?s financial statements contain the following information:
|
31.3.2010 |
31.3.2011 |
|
|
Cash |
2,00,000 |
1,60,000 |
|
Sundry debtors |
3,20,000 |
4,00,000 |
|
Temporary investments |
2,00,000 |
3,20,000 |
|
Stock |
18,40,000 |
21,60,000 |
|
Prepaid expenses |
28,000 |
12,000 |
|
Total current assets |
25,88,000 |
30,52,000 |
|
Total assets |
56,00,000 |
64,00,000 |
|
Current liabilities |
6,40,000 |
8,00,000 |
|
10% debentures |
16,00,000 |
16,00,000 |
|
Equity share capital |
20,00,000 |
20,00,000 |
|
Retained earnings |
4,68,000 |
8,12,000 |
Statement of Profit for the year ended 31st March, 2011
|
Sales |
40,00,000 |
|
Less: Cost of goods sold |
28,00,000 |
|
Less: Interest |
1,60,000 |
|
Net profit |
10,40,000 |
|
Less: Taxes @ 50% |
5,20,000 |
|
Profit after taxes |
5,20,000 |
|
Dividends declared on equity shares |
2,20,000 |
From the above, appraise the financial position of the company from the points of view of: (i) liquidity, (ii) solvency, (iii) profitability, and (iv) activity.