Compute the times interest coverage

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Reference no: EM132513517

From the following prepare ratios from the Balance Sheet.

Particulars Amount (Rs.) as on 31.3.17

Share capital and Liabilities:

Equity Share Capital @ 100 each 7,00,000

Reserves 2,30,000

Debentures 2,50,000

Long term loans 1,00,000

Bills payable 50,000

Sundry Creditors 120,000

Other current liabilities 20,000

Assets:

Buildings 5,00,000

Machinery 4,00,000

Furniture 1,00,000

Bills Receivable 30,000

Sundry Debtors 1,40,000

Stock 2,50,000

Bank 50,000

Particulars 2017

Sales 490000

Less cost of goods sold 306000

Factory exp 22,000

Selling expenses 60000

Administrative exp 58000

Interest exp 25000

Tax 35%

  • Market price per share is 108 and dividend 4 per share is declared. Opening stock 232000 and opening debtors 150000 bill receivable 25,000, opening creditors 135,000

Required:

Question 1: Compute the following:

(1) Current Ratio,

(2) Acid-Test Ratio,

(3) Drs turnover ratio in days ,

(4) Inventory Turnover,

(5) fixed asset turnover,

(6) Debt Equity ratio,

(7) Times Interest Coverage ,

8) EPS

9) P/E ratio

10) Dividend pay out and

(11) Return on Investment

12)Net profit ratio

Reference no: EM132513517

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