Finance For Business - Balance Sheet of ABC Ltd
Finance For Business
Personal Reflection Question - Total Marks 30
1.Balance Sheet of ABC Ltd. as on 31st March 2020
Liabilities
Amount
Assets
Amount
Share Capital
16.00
Fixed Assets (Net)
60.00
Investments
16.60
Reserves & Surplus
22.00
Cash & Bank
00.20
Secured Loans
21.00
Debtors
11.80
Unsecured Loans
25.00
Inventories
10.60
Current Liabilities
16.00
Prepaid Expenses
00.80
Total
100.00
Total
100.00
Profit and loss account for the year ended on 31st March 2020
Particulars
Amount
Particulars
Amount
Opening Stock
13
Sales
105
Purchases
69
Closing Stock
15
Wages
12
Other expenses
10
Gross Profit
16
Total
120
Total
120
Admin. expenses
1.50
Gross Profit b/d
16
Selling expenses
2.00
Depreciation
2.50
Interest
1.00
Net Profit
9.00
Total
16.00
Total
16.00
Income tax
4.00
Net Profit b/d
9.00
Equity dividend
3.00
Retained earnings
2.00
Total
9.00
Total
9.00
Calculate the following :- (20 Marks )
- Current Ratio
- Quick Ratio
- Inventory Turnover Ratio
- Debtors Turnover Ratio
- Fixed Assets Turnover Ratio
- Debt to Equity Ratio
- Gross Profit Ratio
- Net Profit Ratio
- Return on shareholders equity.
- Average Collection Period
2. Imagine yourself as an entrepreneur of ABC LTD. ABC Ltd is a new startup dealing with high-end -organic products ( FMCG). Based on the given scenario- answer the following questions. (10 Marks)
- Which source of finance would you prefer for the start up - Debt / Equity or both? Provide your reason for the same.
- After 2 successful years, you have planned to expand your business to Organic Cosmetic Products as well. Detail on the external source of funds that you prefer.
-
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Solution: Finance For Business - Balance Sheet of ABC Ltd