Ratio Analysis 1. The Net Sales of Apex Co are Rs 15 Crores.

The EBIT of the company as a percentage of sales is 12% The capital employed of the company comprises of Rs 5 Crores of Equity,Rs1 crores of 13% Preference Sahres an Rs 3 Crores of 15 % Debt Capital.The Companys profit is subject to tax at 40 % Calcute the Return On Equity (ROE) for the Company.

2. As on 31/03/2000 the paid up capital of company was Rs1,00,00,000. The ratios as on that date are as under : Current Debt to Total Debt 0.40 Total Debt to Equity 0.60 Fixed Assets to Equity 0.60 Total Assets Turnover (based on sales) 2 times Inventory turnover (based on sales) 8 times Draw the Balance Sheet of the company. 3. The following are the ratios extracted from the balance sheet of a co as on 31st March 2010 Draw up the balance sheet of the company Current Liabilities 1.0 Current Assets 2.5 Working Capital Rs.3,00,000 Liquidity Ratio 1.5 Stock Turnover Ratio 6 Gross Profit Ratio 20% Debt Collection Period 2 months Shareholders Capital Rs.5,00,000 Reserves and Surplus Rs.2,50,000 Fixed Asset Turnover (on cost of sales) 2 4.A Co has total assets of Rs 800000.50% of the assets being financed by borrowed capital at an interest rate of 16% per year. The direct costs for the year are estimated at Rs.480000 and all other operating expenses are estimated at Rs.80,000.The goods are sold to customers at 150% of the direct costs.Income tax rate is assumed to be 50%. You are required to calculate : a) Net Profit Margin b) Return on Assets c) Assets Turnover d) Return on owners equity 5.The Following figures are related to XYZ Ltd:

Sales Net Block Receivables Payable Cash at Bank Closing Stock Bank Overdraft Purchases Expenses Depreciation Interest on Overdraft Loan Interest on loan Share Capital Reserve and Surplus Provision for Income Tax Proposed Dividends Stock on 01-01-2005

2005 12,00,000 5,00,000 2,00,000 1,00,000 50,000 2,00,000 1,00,000 9,00,000 1,00,000 75,000 15,000 4,00,000 1,90,000 1,20,000 40,000 1,80,000

2006 15,00,000 8,00,000 2,95,000 2,00,000 20,000 4,00,000 2,50,000 12,00,000 1,50,000 1,20,000 40,000 2,00,000 35,000 4,00,000 2,07,500 1,97,500 60,000

You are required to : a) Rearrange the figures in Income Statement and Balance Sheet in a form suitable for analysis b) Comment upon the present state and trend in respect of profitability,liquidity, leverageof the company. Consider at least two significant ratios under each heading.