Question #29304

Q3. Draw the Balance Sheet for the following information provided by Sarawath Ltd..

a. Current Ratio : 2.50

b. Liquidity Ratio : 1.50

c. Net Working Capital : Rs.300000

d. Stock Turnover Ratio : 6 times

e. Ratio of Gross Profit to Sales : 20%

f. Fixed Asset Turnover Ratio : 2 times

g. Average Debt collection period : 2 months

h. Fixed Assets to Net Worth : 0.80

i. Reserve and Surplus to Capital : 0.50

Hint: B/S total 1100000

a. Current Ratio : 2.50

b. Liquidity Ratio : 1.50

c. Net Working Capital : Rs.300000

d. Stock Turnover Ratio : 6 times

e. Ratio of Gross Profit to Sales : 20%

f. Fixed Asset Turnover Ratio : 2 times

g. Average Debt collection period : 2 months

h. Fixed Assets to Net Worth : 0.80

i. Reserve and Surplus to Capital : 0.50

Hint: B/S total 1100000

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