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4.36 Management Accounting (Section B)—ISC XII

9. The Balance Sheet of X Ltd. as at 31st March, 2019 was as follows:
BALANCE SHEET
Particulars Note No. `
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 4,00,000
(b) Reserves and Surplus 1,16,000
2. Non-Current Liabilities
Long-term Borrowings 2,00,000
3. Current Liabilities
(a) Trade Payables 1,20,000
(b) Other Current Liabilities 4,000
Total 8,40,000
II. ASSETS
1. Non-Current Assets
Fixed Assets—Tangible 3,00,000
—Intangible 2,40,000
2. Current Assets
(a) Inventories 1,60,000
(b) Trade Receivables 90,000
(c) Cash and Bank Balances 34,000
(d) Other Current Assets 1 16,000
Total 8,40,000
Note to Accounts
1. Other Current Assets `
Prepaid Expenses 16,000

Other Information: `
Revenue from Operations (Net Sales) 8,00,000
Cost of Revenue from Operations (Cost of Goods Sold) 4,80,000
You are required to calculate following ratios:
(i) Current Ratio, (ii) Quick Ratio and (iii) Inventory Turnover Ratio.

GUIDE TO ANSWERS
1. 1.5 : 1.
2. 7.2 Times.
3. 0.2 : 1.
4. (a) Current Ratio—2 : 1; (b) Operating Ratio—50%.
5. (i) Current Ratio—1 : 1; (ii) Liquid Ratio—0.47 : 1.
6. 6 Times.
7. (i) Debt to Equity Ratio—1 : 4; (ii) Proprietary Ratio—66.67%; (iii) Debt to Total Assets Ratio—0.17 : 1.
8. (i) 0.83 : 1; (ii) 0.5 : 1; (iii) 1.83 : 1; (iv) 14%.
9. (i) 2.42 : 1; (ii) 1 : 1; (iii) 3 Times.