Question 1: Attempt any FIVE

1)
2)
3)
4)
5)
6)

What are the advantages of Ratio Analysis?

What is Solvency Ratio?
What is significance of Return on Capital Employed Ratio?
What is Fixed Cost? Give suitable example of Fixed Cost.
What is Margin of Safety?
Why Profit volume ratio is calculated?

Question 2: Attempt any ONE

1) Prepare trading; Profit & Loss A/c & Balance Sheer from the following
data :Current Ratio

1.8 : 1

Working Capital

Rs.40,000

Liquid ratio (calculated with CL)

Fixed

Assets/Shareholder

1.5 : 1
90%

Capital

25%

Gross profit Ratio

10%

Rate of Net profit/Share Capital

Share Capital

Rs.4,00,00
0

Stock turnover Ratio

10 times

Average rate of o/s debtor

54 days
Current assets include stock, debtors & bank Balance liability includes
share capital & current liability. Assets include fixed assets, current assets
& development expenses.
OR
2) Following information of Anand Limited :Year
Sale
Profit
1994
1,20,000
9,000
1995
1,40,000
13,000
You may assume cost construction and selling price is same both the
years. Find out 1) Profit volume ratio 2) Break even point 3) profit on a
sale 1,00,000 4) Sale on a profit of 20,000. 5) Margin of safety for both
the year.