Stock velocity COGS/Avg Inventory 6

Capacity TO ratio Or Asset TO Rati Sales/ AVG Total Assets 2

FA T/O Ratio sales/ avg fixed assets 4

GP RATIO GP/Sales 0.2

DEBTORS VELOCITY 365 X Avg. AR/ Net credit sales 60 days

CREDITORS VELOCITY 365 X Avg. AP/ Net credit purchases 73 days

GP=60000
60000/sales 0.2

Sales 300000
COGS 240000

240000/Avg Inventory 6
Avg Inventory 40000

op stock+cl. Stock /2 40000

op. stock + op. stock +5000/2 40000
2 op stock+5000 80000
2 op stock 75000
op stock 37500
closing stock 42500

Sales/ AVG Total Assets 2

300000/ AVG Total Assets 2
Avg. TA 150000

sales/ avg fixed assets 4

300000/ avg fixed assets 4
Avg FA 75000

365 X Avg. AR/ Net credit sales 60

365*Avg. AR/300000 60
Avg. AR 60*300000/365
49315

total Assets FA+Current Assets

150000 75000+AR+Stock+Other Current Assets
150000 75000+49315+42500+other current assets
Other curent Assets -(OD) -16815

COGS beg.inv+purchase-cl inv

240000 37500+purch-42500
Purch 240000+42500-37500
245000

365 X Avg. AP/ Net credit purchases 73

365*AP/245000 73
AP 73*245000/365
AP 49000

curent assets 91815

od -16815
Fixed Assets 75000
er Current Assets
other current assets

statement of propreitory funds

Equity 81000 FA
reserve 20000 stock
AR
other current assets
less ap
101000
 75000
42500
50000
-17500
-49000 26000
101000
120000