Page 90 - MA12

Ratio Analysis 4.35

II. ASSETS
1. Non-Current Assets
Fixed Assets—Tangible 7,30,000
—Intangible 10,000
2. Current Assets
(a) Inventories 7,50,000
(b) Trade Receivables 6,40,000
(c) Cash and Bank Balances 1,00,000
(d) Other Current Assets 10,000
Total 22,40,000
Notes to Accounts
1. Share Capital `
Equity Share Capital 5,00,000
12% Preference Share Capital 5,00,000
10,00,000
2. Reserves and Surplus
General Reserve 2,00,000
Surplus, i.e., Balance in Statement of Profit and Loss 40,000
2,40,000
3. Long-term Borrowings
12% Debentures 1,50,000
Loan from Bank 50,000
2,00,000

4. From the following data, calculate:
(i) Current Ratio; and (ii) Operating Ratio.
Sundry Debtors—` 10,000; Bills Payable—` 6,000; Stock—` 15,000; Cash and Bank Balances
` 15,000; Creditors—` 14,000; Revenue from Operations (Net Sales)—` 60,000; Operating Expenses—
` 12,000; Cost of Revenue from Operations (Cost of Goods Sold)—` 18,000.
5. Following is the Balance Sheet of ABC Limited as at 31st March, 2019:
Particulars Note No. `
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 48,000
(b) Reserves and Surplus 12,000
2. Non-Current Liabilities
Long-term Borrowings 30,000
3. Current Liabilities
(a) Short-term Borrowings—Bank Overdraft 10,000
(b) Trade Payables 36,800
(c) Short-term Provisions (Provision for Tax) 1,200
Total 1,38,000
II. ASSETS
1. Non-Current Assets
Fixed Assets—Tangible 90,000
2. Current Assets
(a) Inventories 24,000
(b) Trade Receivables 18,000
(c) Cash and Bank Balances 4,560
(d) Other Current Assets (Prepaid Expenses) 1,440
Total 1,38,000
Calculate the following:
(i) Current Ratio and (ii) Liquid Ratio.