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3.44 Analysis of Financial Statements—CBSE XII
BALANCE SHEET
as at 31st March, 2024
Particulars `
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1,00,000
(b) Reserves and Surplus 70,000
2. Current Liabilities
(a) Trade Payables 95,000
(b) Other Current Liabilities 35,000
Total 3,00,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets—Property, Plant and Equipment 2,00,000
2. Current Assets
(a) Inventories 30,000
(b) Trade Receivables 50,000
(c) Cash and Cash Equivalents 20,000
Total 3,00,000

Calculate following ratios:
(i) Quick Ratio; (ii) Inventory Turnover Ratio; and (iii) Return on Investment (ROI). (OD 1997, Modified)
[Ans.: (i) Quick Ratio = 0.54 : 1; (ii) Inventory Turnover Ratio = 3.74 Times;
(iii) ROI = 47.06%.]
[Hint: For ROI, Net Profit = ` 70,000 + ` 10,000 (Loss on Sale of Furniture; being Non-operating) = ` 80,000.]
12. From the following information, calculate any three of the following ratios:
(i) Operating Ratio; (ii) Current Ratio; (iii) Inventory or Stock Turnover Ratio; and (iv) Debt to Equity Ratio.

Particulars `
Equity Share Capital 5,00,000
9% Preference Share Capital 4,00,000
12% Debentures 2,40,000
General Reserve 40,000
Revenue from Operations (Net Sales) 8,00,000
Opening Inventory 48,000
Purchases 5,00,000
Wages 30,000
Closing Inventory 52,000
Selling and Distribution Expenses 6,000
Other Current Assets 2,00,000
Current Liabilities 1,50,000

(Foreign 2000, 2003)
[Ans.: (i) Operating Ratio = 66.5%; (ii) Current Ratio = 1.68 : 1; (iii) Inventory or Stock
Turnover Ratio = 10.52 Times; and (iv) Debt to Equity Ratio = 0.26 : 1.]