Reference no: EM132613802
Below is the summarized statement of financial position of ABC Pvt. Ltd. and the statement comprehensive income for the year ended 31 December 2016
Statement of Financial Position as on 31 December 2016
Assets 2016 2015
Machinery 9,450,000 8,640,000
Inventories 20,925,000 14,850,000
Receivables 12,150,000 9,990,000
Cash at Bank 2,970,000 4,792,500
TOTAL ASSETS 45495,000 38,272,500
Liabilities
Share Capital 6,750,000 6,750,000
Retained Earning 9,585,000 8,370,000
Preference Share 2,700,000 2,700,000
Long Term Borrowing 7,425,000 7,425,000
Trade & other Payables 4,860,000 4,320,000
Short Term Borrowing 14,175,000 8,707,500
TOTAL LIABILITIES 45,495,000 38,272,500
ABC Pvt Ltd Income Statement for the year 2016
Particulars 2016 2015
Sales Revenue 85,320,000 74,250,000
Cost of Sales 63,990,000 54,945,000
Gross Profit 21,330,000 19,305,000
Operating expenses 12,636,000 11,070,000
Other Expenses 1,080,000 -
Depreciation 810,000 675,000
Interest paid 2,430,000 1,485,000
Income Tax 2,430,000 2,160,000
Profit For the year 1,944,000 3,915,000
Statement of changes in equity of ABC Pvt Ltd for the year 2016
Particulars 2016 2015
Balance as on 31 December 8,370,000 5,184,000
Profit for the year 1,944,000 3,915,000
Dividend-Preference share -324,000 -324,000
Dividend-Ordinary share -405,000 -405,000
Balance at 31 December 9,585,000 8,370,000
Question A) Calculate acid test ratio for 2016 and 2015
Question B) Calculate Debt ratio for 2016 and 2015
Question C) Calculate Net income to sales for 2016 and 2015
Question D) Calculate Return on equity for 2016 and 2015