Calculate current ratio The details of ABC Company are as under:60% (Cash sales)Sales20,000,000Cost of sales12,000,000Gross profitoffice exp.(including interest on debenturesselling exp.2,000,0001,800,000profit before taxesTaxes300,000Net profitThe opening stock was420,000Taking360 days of the yearsParticular2$Particular2$35,000,000 fixed assets10% preference share capital 24,000,000 Stock1,200,000 Debtors11,000,000 Bills receivable1,200,000 cashEquity share capital63,888,500165,000Reserves4,000,00010% debentures65,000Creditors3,521,000bank-overdraft1,200,000fictitious assets2,000,000Bills payable35,000outstanding expenses4,50073,639,50073,639,500

Total current assets = Cash + debtors + stock + bills receivable = $3251000+4000000+165000+65000 =…

The details of ABC Company are as under: 60% (Cash sales) Sales 20,000,000 Cost of sales 12,000,000 Gross profit office exp.(including interest on debentures selling exp. 2,000,000 1,800,000 profit before taxes Тахes 300,000 Net profit The opening stock was 420,000 Taking 360 days of the years Particular $ Particular Equity share capital 10% preference share capital 24,000,000 Stock 35,000,000 fixed assets 63,888,500 165,000 Reserves 1,200,000 Debtors 4,000,000 11,000,000 Bills receivable 1,200,000 cash 1,200,000 fictitious assets 10% debentures 65,000 Creditors 3,521,000 bank-overdraft 2,000,000 Bills payable 35,000 outstanding expenses 4,500 73,639,500 73,639,500

The details of ABC Company are as under: 60% (Cash sales) Sales 20,000,000 Cost of sales 12,000,000 Gross profit office exp.(including interest on debentures selling exp. 2,000,000 1,800,000 profit before taxes Тахes 300,000 Net profit The opening stock was 420,000 Taking 360 days of the years Particular $ Particular Equity share capital 10% preference share capital 24,000,000 Stock 35,000,000 fixed assets 63,888,500 165,000 Reserves 1,200,000 Debtors 4,000,000 11,000,000 Bills receivable 1,200,000 cash 1,200,000 fictitious assets 10% debentures 65,000 Creditors 3,521,000 bank-overdraft 2,000,000 Bills payable 35,000 outstanding expenses 4,500 73,639,500 73,639,500

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...

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