The following are the summarized profit and loss account and balance sheet of Waldo Company Ltd., for the year ending 31st March, 2011.
Profit and Loss Account
|
|
Rs |
|
Rs |
|
To Opening stock |
9,950 |
By Sales |
85,000 |
|
To Purchases |
54,525 |
By Closing stock |
14,900 |
|
To Incidental expenses |
1,425 |
|
|
|
To Gross profit |
34,000 |
|
|
|
|
99,900 |
|
99,900 |
|
To Operating expenses: |
|
By Gross profit |
34,000 |
|
Selling and distribution |
3,000 |
By Non operating |
|
|
Administration |
16,500 |
income interest |
300 |
|
To Non operating expenses: |
|
By Profit on sale of shares |
600 |
|
Loss on sale of assets |
400 |
|
|
|
To Net profit |
15,000 |
|
|
|
|
34,900 |
|
34,900 |
Balance Sheet
|
|
Rs |
|
RS |
|
Issued Capital |
|
Land and building |
15,000 |
|
2,000 equity shares of |
|
Plant and machinery |
8,000 |
|
Rs.10 each |
20,000 |
Stock in trade |
14,900 |
|
Reserves |
9,000 |
Sundry debtors |
7,100 |
|
Profit and loss account |
6,000 |
Cash and bank balance |
3,000 |
|
Current liabilities |
13,000 |
|
|
|
|
48,000 |
|
48,000 |
You are required to calculate:
(a) Current ratio
(b) Operating ratio
(c) Stock turnover ratio
(d) Return on total resources
(e) Turnover of fixed assets.