finance for business

profileLady L

  

Personal Reflection Question - Total Marks  30 (max word limit- 300)

  1. Balance Sheet of ABC Ltd. as on 31st March      2020

  

Liabilities


Amount


Assets


Amount

 

Share   Capital


16.00


Fixed   Assets (Net)


60.00

 



Investments


16.60

 

Reserves   & Surplus


22.00


Cash   & Bank


00.20

 

Secured   Loans


21.00


Debtors


11.80

 

Unsecured   Loans


25.00


Inventories


10.60

 

Current   Liabilities


16.00


Prepaid   Expenses


00.80

 




 

Total


100.00


Total


100.00

 




Profit and loss account for the year ended on 31st March 2020

  

Particulars


Amount


Particulars


Amount

 

Opening   Stock


13


Sales


105

 

Purchases


69


Closing   Stock


15

 

Wages


12



 

Other expenses


10



 

Gross   Profit


16



 




 

Total


120


Total


120

 




 

Admin.   expenses


1.50


Gross   Profit b/d


16

 

Selling   expenses


2.00



 

Depreciation


2.50



 

Interest


1.00



 

Net   Profit


9.00



 

Total


16.00


Total


16.00

 

Income   tax


4.00


Net Profit   b/d


9.00

 

Equity   dividend


3.00



 

Retained   earnings


2.00



 




 

Total


9.00


Total


9.00

Calculate  the following :- (20 Marks )

  1. Current Ratio
  2. Quick Ratio
  3. Inventory Turnover Ratio
  4. Debtors Turnover Ratio
  5. Fixed Assets Turnover Ratio
  6. Debt to Equity Ratio
  7. Gross Profit Ratio
  8. Net Profit Ratio
  9. Return on shareholders equity.
  10. Average Collection Period

2. Imagine yourself as an entrepreneur of ABC LTD. ABC Ltd is a new startup dealing with high-end -organic products ( FMCG). Based on the given scenario- answer the following questions. (10 Marks)

  • Which source of finance would you prefer for      the start up - Debt / Equity or both? Provide your      reason for the same.
  • After 2 successful years, you have planned to      expand your business to Organic Cosmetic Products as well. Detail on the      external source of funds that you prefer.
    • a year ago
    • 20