19. 2016 (Make up) Q.No. 5The balance sheet of as on 31st December 2014 and 2015 are given below.Balance Sheets as of December 31AssetsCurrent assets:CashAccount receivableInventoriesTotal current assetsPlant and equipment (net)Total assets2015Rs. 6,500-51,000155,000212,500187,500Rs. 400,0002014Rs. 11,50049,000147,000208,000177,000Rs. 385,000 ACC 519: ACCOUNTING FOR FINANCIAL AND MANAGERIAL DECISIONLiabilities and equity:LiabilitiesCurrent liabilitiesAccount payableOthersTotal current liabilitiesBonds payableTotal liabilitiesStockholders' equityCommon stock (50,000 shares, Rs. 3 par)Paid-in capital in excess of parRetained earningsTotal stockholders' equityTotal liabilities and stockholder's equityOther information:Rs. 60,00025,00085,000100,000185,000150,00020,00045,000Working capital66 Inventory turnoverAns: 3.91% and 11.49%; 6.08% and 17.17%215,000Rs. 400,0002015Rs. 315,00040%Rs. 81,50022,500104,000100,000204,000150,00020,00011,000181,000Rs. 385,0002014Rs. 259,00040%Revenue (Sales)Gross profitRequired: Calculate the following ratios for 2014 and 2015. When datalimitations prohibit computing averages, use year-end balances inyour calculation.0 Return on investmentReturn on equityAcid-test ratioAccounts receivable turnoverRs. 104,000 and Rs. 127,500 0.58 and 0.681.05 times and 1.25 times 68.11 times and 58.29 times

Based on the financial statements given various ratios are to be calculated for both the years.…

Gross profit Required: Calculate the following ratios for 2014 and 2015. When data limitations prohibit computing averages, use year-end balances in your calculation. 0 Return on investment Return on equity Acid-test ratio Working capital 6 Accounts receivable turnover 6 Inventory turnover Ans: 3.91% and 11.49%; 6.08% and 17.17% Rs. 104,000 and Rs. 127,500 0.58 and 0.68 1.05 times and 1.25 times 68.11 times and 58.29 times

Gross profit Required: Calculate the following ratios for 2014 and 2015. When data limitations prohibit computing averages, use year-end balances in your calculation. 0 Return on investment Return on equity Acid-test ratio Working capital 6 Accounts receivable turnover 6 Inventory turnover Ans: 3.91% and 11.49%; 6.08% and 17.17% Rs. 104,000 and Rs. 127,500 0.58 and 0.68 1.05 times and 1.25 times 68.11 times and 58.29 times

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter13: Financial Statement Analysis

Section: Chapter Questions

Problem 13.10E

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E9-6 Current Position Analysis Obj. 3 .................. The following data were taken from the comparative balance sheet of Icon Living, Inc., for the years ended December 31, 20Y9 and December 31, 20Y8: Cash Temporary investments Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Accounts payable Accrued liabilities Total current liabilities ▸ Details Dec. 31, 20Y9 $ 75,000 125,000 250,000 425,000 25,000 $ 900,000 $ 350,000 25,000 $ 375,000 Dec. 31, 2018 $ 50,000 75,000 200,000 305,000 20,000 $ 650,000 $ 230,000 20,000 $ 250,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. b. What conclusions can be drawn from these data?
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