Financial Accounting

extra credit homework

Attempt all questions (Total Marks= 100)

This is an extra credit event! It is not so hard so everyone of you can try it! But do remember that your work should be submitted in handwritten form.

Question: 1 Marks: 25

The Balance Sheet of Punjab Auto Limited as on 31‐12‐2021 was as follows:

From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt‐Equity Ratio

Question: 2 Marks: 25

From the following information, calculate ratios given below. Showing the details of working:     

Total Sales (p.a.)                             Rs. 5,00,000

Gross Profit                                           25%

Annual Credit Sales                          80% of net sales

Inventory                                        Rs. 75000

Sales Returns                                   20% of sales   

Average collection period                   73 days

Receivables                                      Rs. 64000

(a) Net Sales

(b) Gross Profit

(c) Cost of Goods Sold

(d) Inventory Turnover

(e) Receivable Turnover

Question: 3 Marks: 50

Following are the balance sheets of a Vijay & son:

During the year Rs. 26,000 paid as dividend. The provision made for depreciation against machinery as on 1.1.05 was Rs. 27,000 and on 31.12.05 Rs 36,000.

Prepare a cash flow statement.