FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Problem no 19, (Ref. 3)
The following are the financial statements of Bagmati Bitumin Limited.
Assets
Cash
Accounts receivable
Inventory
Total current assets
Fixed assets
Total assets
Sales
Cost of goods sold
Depreciation
Bagmati Bitumin Limited
Balance Sheet as of December 31, 2016 and 2017
2016
Rs 650
2,382
4,408
Rs 7,440
2017 Liabilities and Equity
Rs 710 Accounts payable
2,106 Notes payable
4,982 Other
Rs 7,798
Rs 13,992 Rs 18,584 Total debt
Total current liabilities
Long-term debt
Owners' equity (1,250
shares outstanding)
Rs 21,432 Rs 26,382 Total liabilities and
equity
Earnings before interest and taxes
Interest paid
Taxable income
Taxes @ 35%
Net Income
Dividends
Addition to retained earnings
Market price for a share of stock
2016
Rs 987
640
90
Rs 1,717
4,318
Rs 6,035
Rs 15,397
Bagmati Bitumin Limited
Income Statement for the Year Ended December 31, 2017
2017
Rs 1215
718
230
Rs 2,163
4,190
Rs 6,353
Rs 20,029
Rs 21,432 Rs 26,382
Rs 28,000
11,600
2,140
Rs 14,260
980
Rs 13,280
4,648
Rs 8,632
Rs 4,000
Rs 4,632
Rs 63
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Transcribed Image Text:Problem no 19, (Ref. 3) The following are the financial statements of Bagmati Bitumin Limited. Assets Cash Accounts receivable Inventory Total current assets Fixed assets Total assets Sales Cost of goods sold Depreciation Bagmati Bitumin Limited Balance Sheet as of December 31, 2016 and 2017 2016 Rs 650 2,382 4,408 Rs 7,440 2017 Liabilities and Equity Rs 710 Accounts payable 2,106 Notes payable 4,982 Other Rs 7,798 Rs 13,992 Rs 18,584 Total debt Total current liabilities Long-term debt Owners' equity (1,250 shares outstanding) Rs 21,432 Rs 26,382 Total liabilities and equity Earnings before interest and taxes Interest paid Taxable income Taxes @ 35% Net Income Dividends Addition to retained earnings Market price for a share of stock 2016 Rs 987 640 90 Rs 1,717 4,318 Rs 6,035 Rs 15,397 Bagmati Bitumin Limited Income Statement for the Year Ended December 31, 2017 2017 Rs 1215 718 230 Rs 2,163 4,190 Rs 6,353 Rs 20,029 Rs 21,432 Rs 26,382 Rs 28,000 11,600 2,140 Rs 14,260 980 Rs 13,280 4,648 Rs 8,632 Rs 4,000 Rs 4,632 Rs 63
Calculate:
(a) Current ratio
(c)
Total assets turnover
(e) Receivables turnover
(g) Debt-equity ratio
(1) Times interest earned ratio
Return on assets
(k)
(m) Price earnings ratio
(0) Market-to-book ratio
(b)
(d)
(f)
(h)
(j)
(1)
(n)
Quick ratio
Inventory turnover
Total liabilities to assets ratio
Equity multiplier
Profit margin
Return on equity
Dividends per share
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Transcribed Image Text:Calculate: (a) Current ratio (c) Total assets turnover (e) Receivables turnover (g) Debt-equity ratio (1) Times interest earned ratio Return on assets (k) (m) Price earnings ratio (0) Market-to-book ratio (b) (d) (f) (h) (j) (1) (n) Quick ratio Inventory turnover Total liabilities to assets ratio Equity multiplier Profit margin Return on equity Dividends per share
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