1. Comprehensive analysis: The balance sheets and the profit and loss accounts of Maharaja SyntheticsLimited for the last two years are given as follows:Particulars(Rs.in Thousands)20172018Net salesOther IncomeTotal Income788, 1 1015,370803,480672,04018,020690,060473,290118,190Cost of goods soldOther operating expensesDepreciationInterestProfit before tax520,460131,97022,26020,14032,86024,38095,93054,060Тахекs28,78067,15016,78816,218Profit after tax37,842Dividend9,460Retained earnings50,36228,382Balance Sheet as on 31st MarchParticularsAssetsNon-current assetsCash and bankTrade receivablesInventoriesTotal Current assets20182017223,20024,202175,96021,20091,16068,900130,210111,300201.400377,360245.572Total468,772LiabilitiesShareholders fund (Note 1)232,682182,320106,000Long term debtShort term debtTrade payablesTotal current liabilities137,80058,30039,99098,29058,30030.74089.040377,360Total468,772Additional Information:1. The details of shareholders' funds are as follows:2017: Equity Share Capital Rs.1,00,000 (Shares of Rs. 100 each) OtherEquity: Rs. 82,3202018: Equity Share Capital Rs.1,00,000 (Shares of Rs.100 each) OtherEquity: Rs. 1,32,6822. Ail Non-Current Asset are Fixed Assets.3.Current Market Price of the company is Rs.3004.Assume Tax rate to be 30%Based on the information above compute and interpret:1.Profitability Ratioa) Gross Profit Ratiob) Net Profit Ratioc) Operating Profit Ratiod) Earnings Per Share2.Liquidity Ratioa) Current Ratiob) Liquid Ratio3.Solvency Ratioa) Debt Equity Ratiob) Interest Coverage Ratio4.Asset Utilization Ratioa) Fixed Asset Turnover Ratiob) Inventory Turnover Ratio and Average Holding Periodc) Trade receivable Turnover Ratio and Average Collection Period5. Market Ratioa) Price earnings ratiob) Dividend pay-outc) Dividend yield ratio

1. Profitability ratios a) Gross Profit Margin = (Gross profit / Net sales ) *100 Gross profit =…

Answered: Based on the information above compute…

Based on the information above compute and interpret: 1.Profitability Ratio a) Gross Profit Ratio b) Net Profit Ratio c) Operating Profit Ratio d) Earnings Per Share

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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