Question 1)a) Comparative B/S of ABC Company are given below (Rs Lakhs):
Owners Equities & Liabilities 2009 2010
Share capital 50 50
Reserves & Surplus 60 70
Long term debt 95 80
Short term bank borrowings 70 80
Trade creditors 50 60
Provisions 20 15
Total 345 355
Assets:
Net fixed assets 180 190
Inventories 70 60
Debtors 60 70
Cash 20 15
Other Current Assets 15 20
Total 345 355
Income statement of ABC company for the year 2010 is as given below (Rs.Lakhs):
Net sales 800
Cost of Goods sold:
Stocks 300
Wages & Salaries 105
Other Mfg Expenses 115 520
Operating Expenses: 150
Selling, Admn. Expenses 130
Depreciation 20
Non-operating Surplus or (Deficit) (50)
Interest 30
Tax 20
Dividends 20
Retained earnings 10
Prepare funds flow statement on total resource basis
b) Create the Du Pont chart of ABC Company for the year 2009 – 2010.
c) State and evaluate different liquidity ratios and leverage ratios for ABC Company.