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3.42 Analysis of Financial Statements—CBSE XII
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
(i) Property, Plant and Equipment 95,000
(ii) Intangible Assets 57,000
2. Current Assets
(a) Trade Receivables 25,000
(b) Cash and Cash Equivalents 40,000
Total 2,17,000
[Ans.: (i) Proprietary Ratio = 0.51 : 1; (ii) Debt to Equity Ratio = 0.55 : 1; (iii) Total Assets to Debt Ratio = 3.62 : 1.]
9. From the following Statement of Profit & Loss for the year ended 31st March, 2024 of Matrix Ltd., calculate
Inventory (Stock) Turnover Ratio:

STATEMENT OF PROFIT & LOSS
for the year ended 31st March, 2024
Particulars Note No. `
I. Revenue from Operations (Net Sales) 25,00,000
II. Other Income 25,000
III. Total Revenue (I + II) 25,25,000
IV. Expenses:
(a) Cost of Materials Consumed 1 10,00,000
(b) Changes in Inventories of Finished Goods and WIP 2 1,25,000
(c) Employees Benefit Expenses 3,00,000
(d) Other Expenses 75,000
Total Expenses 15,00,000
V. Profit before Tax (III – IV) 10,25,000

Notes to Accounts
Particulars `
1. Cost of Materials Consumed
Opening Inventory 1,50,000
Add: Purchases 9,50,000
11,00,000
Less: Closing Inventory 1,00,000
10,00,000
2. Changes in Inventories of Finished Goods and WIP
Work-in-Progress
Opening Inventory 75,000
Less: Closing Inventory 50,000
A 25,000
Finished Goods
Opening Inventory 1,75,000
Less: Closing Inventory 75,000
B 1,00,000
Total (A + B) 1,25,000
[Ans.: Inventory Turnover Ratio = 3.6 Times.]
OpeningInventory of Materials, WIP andFinished Goods
+ClosingInventory of Materials, WIP andFinished Goods
[Hint: Average Inventory = ]
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