Financial Statements and Firm Value 141
1982 1983 1984
Others 736 1,571 2,066
Current assets – – –
Total 63,746 56,880 67,092
If sales amount to Rs 75,000, express all variables as (average) percentage of sales. If current assets grow at 14 percent,
current liabilities at 22 percent, and fixed assets at 21 percent, forecast balance sheet for the next year.
- From the following data calculate the Collection Period, Payables Period, and Inventory Turnover respectively:
A. Sales Rs 150,000
Accounts receivable Rs 12,000
B. Sales Rs 900,000
Cost of sales Rs 500,000
Purchases Rs 360,000
Ending inventory Rs 420,000
Accounts payable Rs 90,000
C. Sales Rs 1,400,000
Beginning inventory Rs 120,000
Ending inventory Rs 310,000
Cost of sales Rs 900,000
- A company with a current ratio of 2.5 has current liabilities of $130,000. Indicate whether the transactions increase or
decrease the current ratio, the working capital and if yes, to what extent.
- The company purchased Rs 10,000 worth of goods on account.
- The company collects accounts receivables amounting to Rs 8,000.
- The company purchases a machine worth Rs 40,000 by paying Rs 10,000 in cash and the balance on credit to be paid
- after 15 months.
- Company pays dividends amounting to Rs 10,000 in cash.
- Calculate the return on assets for the two companies given here:
Alpha Beta
Net sales Rs 25,375,000 –
Total assets – Rs 4,250,000
Net profit on sales 5 percent 20 percent
Turnover of assets 6X –
Gross margin (percent) 35 Rs 460,000 (25 percent)
- Given below is a company’s quarterly balance sheet. Prepare the funds flow statement and comment on the movement of
funds.
Q4 Q3 Q2 Q1
A/C payable 159 126 42 98
Notes payable 115 89 39 154
Preferred stock 75 75 75 75
Share capital 150 150 150 150
Retained earnings 149 128 133 136
Total 648 568 439 613
Cash 2 1 47 23
A/C receivable 79 34 128 214
Inventory 430 389 113 218
Net plant and equipment 137 144 151 158
Total 648 568 439 613
Table contd.
