1. Question # 1
Following is the balance sheet of XYZ Ltd. as on 31st December, 2010.
Sales $600,000 Gross Profit 20% on cost
Calculate the following ratios:
•Current Ratio
•Liquidity Ratio
•Stock Turnover Ratio
•Debtors turnover Ratio
Liabilities $ Assets $
Equity Share Capital: Machinery 400,000
2400 shares of Rs. 100 each 240,000 Furniture 50,000
Profit and loss account 60,000 Stock 120,000
10% debentures 150,000 Sundry Debtors 90,000
Sundry Creditors 150,000 Cash at bank 22,800
Provision for taxation 10,000 Prepaid insurance 7,200
Bank Overdraft 80,000
690,000 690,000

2. Question # 2
Chand & Co. purchase goods both for cash and on credit. The
following figures have been taken from their books:
Total purchases $425,000
Cash Purchases $113,000
Returns Outwards $12,000
Creditors at the end of the year $53,200
Bills payable at the end of the year $6,800
Taking a year of 365 days calculate creditors turnover ratio
and average payment period.

3. Question # 3
Compute the debtor turnover ratio and debtor collection period from
the following:
2009 2010
Gross Sales 950,000 800,000
Cash Sales 100,000 75,000
Sales Returns 50,000 25,000
Debtors in the beginning of the year 73,000 -
Bills recievables at the beginning of the year 10,000 -
Debtors at the end of the year 102,000 77,000
Bills recievables at the end of the year 15,000 6,000

4. Question # 4
From the following trading and profit and loss account of Allied
Chemicals Ltd. compute:
•Gross Profit Ratio
•Operating Profit Ratio
•Operating Ratio
•Net Profit Ratio
•Stock Turnover ratio

5. Trading and Profit and Loss Account
For the Year Ended 31st December, 2010
Details $ Details $
Stock 55,000 Sales 843,500
Purchases 465,000 Stock 79,500
Factory Expenses 143,000
Gross Profit c/d 260,000
923,000 923,000
Office Expenses 50,000 Gross Profit c/d 260,000
Selling Expenses 30,000 Profit on sales of car 20,000
Distribution Expenses 20,000 Interest on Investment 40,000
Provision for Doubtful Debts 4,000
Depreciation 16,000
Interest on Debentures 14,000
Loss of Cash by theft 6,000
Net Profit 180,000
320,000 320,000

6. Question # 5
From the summarized balance sheet given below of a company calculate:
•Stock Turnover Ratio
•Debtors Turnover Ratio
•Working Capital Turnover Ratio
•Fixed assets turnover ratio
Liabilities $ Assets $
Equity 124,000 Fixed Assets 208,000
Lon term loans 106,000 Stock 46,000
Current Liabilities 74,000 Debtors 44,000
Less: Provision 4,000 40,000
Cash 10,000
304,000 304,000
Sales $400,000 ; Gross Profit 20%

7. Question # 6
From the following information calculate for both the companies:
•Gross Profit Ratio
•Working Capital Ratio
•Stock Turnover Ratio
•Liquid Ratio
X Ltd. Y Ltd.
Sales 2,520,000 2,140,000
Cost of Sales 1,920,000 1,635,000
Opening Stock 300,000 275,000
Closing Stock 500,000 350,000
Other Current Assets 760,000 640,000
Fixed Assets 1,440,000 1,600,000
Net Worth 1,500,000 1,400,000
Debts (long term) 900,000 950,000
Current Liabilities 600,000 665,000

8. Question # 7
Balance Sheet of A Ltd. is given below:
Net Sales for the year is $ 5,760,000
Compute:
•Net Profit Ratio
•Current Ratio
•Fixed Asset turnover ratio
•Debt-equity ratio
•Stock turnover ratio
•Debtors turnover ratio
Liabilities $ Assets $
Share Capital 800,000 Building 1,200,000
15% Debentures 400,000 Machinery 240,000
P& L a/c (current year) 600,000 Debtors 1,300,000
General Reserves 600,000 Stock 700,000
Current Liabilities 1,160,000 Bank 120,000
3,560,000 3,560,000

9. Question # 8
The balance sheet of Star Ltd. as at 31st December, 2010 is given below:
Liabilities:
Equity Share Capital $ 300,000
Reserves 90,000
Creditors 60,000
450,000
Assets:
Plant & Machinery $ 225,000
Furniture 25,000
Stock 90,000
Debtors 60,000
Cash in hand 20,000
Cash at bank 30,000
450,000

10. The other details are as follows:
•Total sales during the year have been $500,000 out of
which cash sales amounted to $100,000.
•The gross profit has been earned @ 20%.
•Opening balances:
Debtors $ 40,000 ; Stock $ 70,000 ; Creditors $ 15,000
•Cash paid to creditors during the year $ 105,000.
You are required to calculate the following ratios:
•Current Ratio
•Acid Test Ratio
•Debtors Turnover Ratio
•Creditors Turnover Ratio
•Stock Turnover Ratio