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4.26 Analysis of Financial Statements—CBSE XII
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 6,00,000 5,50,000
(b) Non-current Investments 1,00,000 1,00,000
2. Current Assets
(a) Inventories 3 4,50,000 3,75,000
(b) Trade Receivables 4 5,00,000 2,50,000
(c) Cash and Cash Equivalents 2,00,000 2,00,000
Total 18,50,000 14,75,000

Notes to Accounts
Particulars 31st March, 31st March,
2025 (`) 2024 (`)
1. Short-term Borrowings
Bank Overdraft 60,000 50,000
Loan Against Fixed Deposit 40,000 25,000
1,00,000 75,000
2. Trade Payable
Sundry Creditors 2,00,000 1,65,000
Bills Payable 50,000 35,000
2,50,000 2,00,000
3. Inventories
Materials 2,25,000 1,75,000
Finished Goods 1,25,000 1,75,000
Loose Tools 1,00,000 25,000
4,50,000 3,75,000
4. Trade Receivables
Sundry Debtors 4,00,000 2,25,000
Bills Receivable 1,00,000 25,000
5,00,000 2,50,000

Solution:
Current Ratio 31st March, 2025 31st March, 2024

Current Assets ` 10,50,000 ` 8,00,000
=  =
Current Liabilities ` 3,50,000 ` 2,75,000
= 3 : 1 = 2.91 : 1
Working Note:
Current Assets = Inventories (Excluding Loose Tools) + Trade Receivables +
Cash and Cash Equivalents
2025 = ` 3,50,000 + ` 5,00,000 + ` 2,00,000 = ` 10,50,000
2024 = ` 3,50,000 + ` 2,50,000 + ` 2,00,000 = ` 8,00,000
Current Liabilities = Short-term Borrowings + Trade Payables
2025 = ` 1,00,000 + ` 2,50,000 = ` 3,50,000
2024 = ` 75,000 + ` 2,00,000 = ` 2,75,000.