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You are given a balance sheet of a business firm with following particulars. Work out the ratios given at the end......
Liabilities 1st yr 2nd yr
Capital 40 40
Reserves 15 20
Debentures 70 60
Other Current Liabilities 18 24
Bank Working Capital Limits 37 36
Total Liabilities 180 180
Assets 1st yr 2nd yr
Fixed Assets 32 33
Advance for fixed assets 5 -
Security Deposits 4 6
Stocks 66 81
Book Debts 49 30
Sundry Debtors 16 24
Preliminary Expenses 8 6
Total Assets 180 180
Sales 312 390
Profits 8 9
Depreciation 3 3
1. The short term sources of funds and short term uses of funds during the first year was......
a. 55 and 131
b. 37 and 131
c. 55 and 105
d. 37 and 105
Ans - a
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2. The long term sources of funds and long term use of funds during the 2nd year was......
a. 120 and 45
b. 100 and 45
c. 120 and 39
d. 112 and 39
Ans - d
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3. The short term sources of funds during the 2nd year, compared to the 1st year have......
a. shown increase
b. shown decline
c. shown no change
d. none of the above
Ans - a
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4. The long term of use of funds during the 2nd year, compared to the 1st year has ......
a. shown increase
b. shown decline
c. shown no change
d. none of the above
Ans - b
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5. Current Ratio and Quick Ratio for the 2nd year are respectively......
a. 2.20:1 and 0.8:1
b. 2.42:1 and 0.9:1
c. 2.25:1 and 0.9:1
d. 2.22:1 and 0.8:1
Ans - c
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6. What is the Debt-equity ratio for the 1st and 2nd year?
a. 1.11:1 and 1.49:1
b. 1.49:1 and 1.11:1
c. 1.32:1 and 1.11:1
d. 1.98:1 and 1.73:1
Ans - d
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7. Cash accrual for 1st and 2nd year respectively is......
a. 8 and 9
b. 9 and 8
c. 11 and 12
d. 12 and 11
Ans - c
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8. Net Working Capital of 2nd year, over the 1st year has shown......
a. no change
b. deterioration
c. increase
d. decline and improvement
Ans - b
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9. Net profit to sales ratio for the 1st year has been......
a. 2.3%
b. 2.5%
c. 2.9%
d. 3.4%
Ans - b
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