From the following information, calculate any two of the following ratios:
(a)Â Debt-Equity Ratio
(b)Â Working Capital Turnover Ration and
(c)Â Return on Investment
Information:Â Equity Share capital Rs 50,000, General Reserve Rs 5,000; Profit and Loss
Account after tax and interest Rs 15,000; 9% Debenture Rs 20,000; Creditors Rs 15,000; Land and Building Rs 65,000; Equipment Rs 15,000; Debtors Rs 14,500 and Cash Rs 5,500. Discount on issue of shares Rs 5,000
Sales for the year ended 31-3-2011 was Rs 1,50,000. Tax rate 50%.
From the following Balance Sheets of Sonam Ltd as on 31-3-2012 and 31-3-2011.
Prepare a Cash Flow Statements:
Liabilities |
31-3-2011 Rs |
31-3-2011 Rs |
Assets |
31-3-2011 Rs |
31-3-2011 Rs |
Equity Shares Capital Profit and Loss Account Bank Loan Proposed Dividend Provision for tax Creditors |
1,00,000 Â 25,000 Â 50,000 20,000 Â 10,000 15,000 Â |
1,50,000 Â 50,000 Â 25,000 15,000 Â 17,500 11,250 |
Patents Building Investment Debtors Stock Cash     |
12,500 1,50,000 - 50,000 2,500 5,000 |
11,250 1,50,000 18,750 3,750 21,250 |
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2,20,000 |
2,68,750 |
 |
2,20,000 |
2,68,750 |
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Â
Additional Information:
During the year a Building having book value Rs 50,000 was sold at a loss of Rs 2,000 and depreciation charged on Building was Rs 4,000.
Â
Cash Flow Statement Activities:
 |
Particulars |
Amount Rs |
Amount Rs |
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 |
a)Cash Flow from Operating Activities |
 |
 |
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Profit during the year                25,000 |
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Proposed Dividend                     15,000 |
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Provision for Taxation                17,500 |
 |
 |
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Profit before Taxation |
57,500 |
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Add: non cash and non-operating expenses |
 |
 |
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 |
 |
 |
Depreciation |
4,000 |
 |
|
 |
 |
 |
Loss on Sale of Assets |
2,000 |
 |
|
 |
 |
 |
Patents Written-off |
1,250 |
 |
|
 |
Operating Profit before Working Capital Changes |
64,750 |
 |
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 |
 |
Less: |
Increase in  current assets and decrease in current liabilities Increase in Debtors |
  (13,750) |
 |
|
 |
 |
 |
Increase in Stock |
(1,250) |
 |
|
 |
 |
 |
Decrease in Creditors |
(3,750) |
 |
|
 |
Profit from operation before Tax paid |
46,000 |
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 |
 |
Less: |
Tax paid |
10,000 |
 |
|
 |
Net Cash flow from Operating Activities |
36,000 |
36,000 |
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 |
 |
 |
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|
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(B) Cash Flow from Investing Activities |
 |
 |
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 |
 |
Proceeds from Sale of Building |
48,000 |
 |
||
 |
 |
Less: |
Purchase of Building |
(54,000) |
 |
|
 |
 |
Less: |
Purchase of Investment |
(18,750) |
 |
|
 |
Net Cash flow from Investing Activities |
(24,750) |
(24,750) |
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|
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(C) Cash Flow from Financing Activities |
 |
 |
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 |
Proceeds from Issue of Share |
50,000 |
 |
|||
 |
 |
Less: |
 Repayment of loan |
(25,000) |
 |
|
 |
 |
Less: |
 Dividend Paid |
(20,000) |
 |
|
 |
Net Cash flow from Financing Activities |
5,000 |
5,000 |
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 |
Net Increase in Cash and Cash Equivalents(A+B+C) |
 |
16,250 |
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 |
 |
Add: |
Cash at the beginning |
 |
5,000 |
|
 |
Cash at the end |
 |
21,250 |
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Â
Working Notes:
Building Account |
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Dr. |
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Cr. |
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Date |
Particulars |
Amount Rs |
Date |
Particulars |
Amount Rs |
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 |
Balance b/d |
1,50,000 |
 |
Depreciations |
4,000 |
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 |
 |
 |
 |
Sale |
48,000 |
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 |
 |
 |
 |
Profit and loss a/c |
2,000 |
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 |
 |
 |
 |
 |
 |
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Bank A/c (Purchase-Balancing figure) |
54,000 |
 |
 By balance c/d |
1,50,000 |
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 |
 |
2,04,000 |
 |
 |
      2,04,000 |