Scribd
Upload
73 views2 pages

Ratio Analysis for Juliet & Co.

From the financial statements provided for Juliet & Company: 1) Current ratio decreased from 2.4 in 2012 to 2.33 in 2013, quick ratio decreased from 2.2 to 2.33, debt equity ratio increased from 0.75 to 0.77. 2) Debtors turnover ratio was 10 times, inventory turnover ratio was 6 times, and sales ratios were current assets to sales ratio of 0.47 and fixed assets to sales ratio of 0.3.

Uploaded by

Lovely Lenin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
73 views2 pages

Ratio Analysis for Juliet & Co.

From the financial statements provided for Juliet & Company: 1) Current ratio decreased from 2.4 in 2012 to 2.33 in 2013, quick ratio decreased from 2.2 to 2.33, debt equity ratio increased from 0.75 to 0.77. 2) Debtors turnover ratio was 10 times, inventory turnover ratio was 6 times, and sales ratios were current assets to sales ratio of 0.47 and fixed assets to sales ratio of 0.3.

Uploaded by

Lovely Lenin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Course – Cost & Management Accounting

Class- II year B.Com.LL.B ( Hons) Date – 08.05.2020

Assignment - III
RATIO ANALYSIS

Problem - From the following statements, calculate Current Ratio, Debt Equity Ratio, Quick Ratio,
Debtors Turnover Ratio, Inventory Turnover Ratio, Sales Ratios.
Condensed Income Statement of Juliet & Company
for year ending March 31, 2013
(in ` ‘000)
` % sales
Net Sales 600 100.0
Less: Cost of goods sold 360 60.0
Gross Profit 240 40.0
Operating Profit 84 14.0
Interest 8 1.3
Income before tax 76 12.7
Income tax provision 38 6.4
Net Income after tax for the year 38 6.3

Balance Sheet of Julient & Co.


(as on March 31, 2012 and 2013)
(in ` ‘000)
March 31, March 31,
2012 2013
Assets:
Current Assets:
Cash 60 80
Account receivables (net) 60 60
Inventories 100 120
Pre-paid expenses 20 20
Total Current Assets 240 280
Fixed Assets:
Land 60 60
Building and structures 240 240
Less: Accumulated depreciation 120 140
Net Buildings structures 120 100
Total Fixed Assets 180 160

1
Other Assets:
Goodwill and patents  20
Total Assets 420 460
Liabilities and Equities
Current Liabilities:
Accounts payable 50 60
Wages and taxes outstanding 30 20
Income-tax payable 20 40
Total Current Liabilities 100 120
Long-term Liabilities:
10% Mortgage Debentures 80 80
Total Liabilities 180 200
Shareholders’ Equity:
Share capital (6,000 shares of `20 each fully paid) 120 120
Retained earnings 120 140
Total Shareholders’ Equity 240 260
Total Liabilities and Equities 420 460

You might also like