ABC Company Ltd provides you following information and balance sheet on 31 December:Balance SheetAssetsLiabilitiesAmountAmountEquity shares capital @ Rs 1006% Preference shares capital200,000 Fixed assets475,00050,000 Long term investment50,000 Other quick assets180,000 Closing stock180,000 Preliminary expenses50,0008% Debentures135,000Current liabilities20,000General reserve10,000P&L account last year131,750 Account receivable157,500P&L account current year55,750847,500847,500Other information:Fixed assets turnover ratio was 3 times for the year.Net profit margin before interest and tax was 10% opening stock sales.Company is within 50% tax brackets.Working days during the year was 360 days.Required: (a) Amount of sales; (b) Net profit after tax; (c) Average collection period; (d) Current ratio;Ve) Quick ratio; (f) Debt equity ratio; (8) Return on shareholders' equity

solution : Note Dear student as per bartleby by guidelines we are required to solve first three…

ABC Company Ltd provides you following information and balance sheet on 31 Decem Balance Sheet Liabilities Amount Assets Equity shares capital @ Rs 100 6% Preference shares capital 200,000 Fixed assets 50,000 Long term investment 50,000 Other quick assets 180,000 Closing stock 180,000 Preliminary expenses 131,750 Account receivable 8% Debentures Current liabilities General reserve P&L account last year P&L account current year 55,750 847,500 Other information: Fixed assets turnover ratio was 3 times for the year. Net profit margin before interest and tax was 10% opening stock sales. Company is within 50% tax brackets. Working days during the year was 360 days. Required: (a) Amount of sales; (b) Net profit after tax; (c) Average collection period;

ABC Company Ltd provides you following information and balance sheet on 31 Decem Balance Sheet Liabilities Amount Assets Equity shares capital @ Rs 100 6% Preference shares capital 200,000 Fixed assets 50,000 Long term investment 50,000 Other quick assets 180,000 Closing stock 180,000 Preliminary expenses 131,750 Account receivable 8% Debentures Current liabilities General reserve P&L account last year P&L account current year 55,750 847,500 Other information: Fixed assets turnover ratio was 3 times for the year. Net profit margin before interest and tax was 10% opening stock sales. Company is within 50% tax brackets. Working days during the year was 360 days. Required: (a) Amount of sales; (b) Net profit after tax; (c) Average collection period;

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.4C

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