MFA Individual AssignmentProblem No.1From the following information prepare a balancesheet with many...

Question

MFA Individual AssignmentProblem No.1From the following information prepare a balancesheet with many details as possible:Gross profit- Rs.80,000; Gross profitto cost of goodssold ratio-1/3Stock velocity-6 times; Openingstock-Rs.36,000 Accounts receivable velocity (360 days)-72days; Currentassets-Rs.150,000 A/c payablevelocity-90 days; Bills receivable-Rs.20,000Bills payable-Rs.5,000; Fixedassets turnover ratio – 8 times. (Turnoverrefers to cost of sales)Problem No.2                    Problem 3                    Problem 4

Khushboo · Accepted Answer

Solution 1
Gross profit = Rs. 80,000
Gross profit to cost of goods sold ratio-1/3
Rs. 80000/ cost of goods sold = 1/3
Cost of goods sold = Rs. 240,000
Stock velocity-6 times
Stock velocity = (Average stock * 360/12)/ Cost of sales
6 = (Average stock * 360/12)/240000
48000 = Average stock
Average stock = (Opening stock + Closing stock)/2
48000 = (36000+ closing stock) / 2
96000 = 36000 + closing stock
Closing stock = 60,000
Accounts receivable velocity = 72 days
Accounts receivable velocity = (Receivables * 360/12)/ Cost of sales
Accounts Receivables = 576,000
A/c payable velocity-90 days
Accounts payable velocity = (Accounts payable * 360/12)/ Cost of sales
Accounts payable = 720,000
Fixed assets turnover ratio – 8 times
Fixed assets turnover ratio = Cost of sales / Fixed assets
8 = 240000/ Fixed assets
Fixed assets = 30,000
Balance Sheet
	Particulars
	Amount Rs.
	Current assets
	 
	Stock
	60000
	Accounts receivable
	576000
	Bills receivable
	20000
	Current assets
	150000
	Total current assets
	806000
	Fixed assets
	30000
	 
	 
	Total assets
	836000
	 
	 
	Liabilities
	 
	Accounts payable
	720000
	Bills payable
	5000
	 
	 
	Total liabilities
	725000
Solution 2
	 
	 
	30 April 20x3
	ROCE
	Net profit
	465
	16.34%
	 
	Capital employed
	2845
	 
	 
	 
	 
	 
	Profit/sales
	Profit
	465
	4.15%
	 
	Sales
	11200
	 
	 
	 
	 
	 
	Asset turnover
	Sales
	11200
	3.24
	 
	Average assets
	3460
	 
	 
	 
	 
	 
	 
	 
	 
	 
	Current ratio
	Current assets
	1950
	2.04
	 
	Current liabilities
	955
	 
	 
	 
	 
	 
	Quick ratio
	Current asset-inventory
	1310
	1.37
	 
	Current liabilities
	955
	 
	 
	 
	 
	 
	Gross profit margin
	Gross profit
	2740
	24.46%
	 
	sales
	11200
	 
	 
	 
	 
	 
	Days debtor
	365
	365
	37.64
	 
	Debtor turnover
	9.

MFA Individual AssignmentProblem No.1From the following information prepare a balancesheet with many details as possible:Gross profit- Rs.80,000; Gross profitto cost of goodssold ratio-1/3Stock...

Problem 4

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