Compute debt equity ratio and prepare a cash flow statement, Financial Accounting

Assignment Help:

1.From the following information you are required to prepare a cash Flow statement of XYZ Ltd for the year ended 31^st December 2009

LIABILITIES	2008	2009	ASSETS	2008	2009
Share Capital	100000	200000	Fixed Assets	100000	200000
Profit and loss account	50000	70000	Goodwill	50000	40000
General reserve	30000	40000	Inventories	50000	70000
6% Bonds	50000	60000	Debtors	50000	80000
Sundry Creditors	30000	50000	Bills Receivable	10000	30000
Outstanding Expenses	10000	15000	Bank	10000	15000
	270000	435000		270000	435000

2. The Balance Sheet as on 31^st December 2009 is as follows:

LIABILITIES	Amount(Rs)	ASSETS	Amount(Rs)
Equity Share Capital	2000000	Fixed Assets (Net)	1700000
General Reserves	200000
Secured Loans: Fixed 300000	600000	Current Assets: Stock	700000
Secured Loans: Fixed 300000		Debtors	300000
Cash Credit 300000		Loans and Advances	700000
Current Liabilities	600000
Current Liabilities	3400000		3400000

Compute:

i) Debt - Equity ratio

ii) Current Ratio

Related Discussions:- Compute debt equity ratio and prepare a cash flow statement

Financial accounting theory, accountability through conceptual framework in...

accountability through conceptual framework in australia eassy on this topic with research

Public oversight board, Public Oversight Board (POB) - POB is an independen...

Public Oversight Board (POB) - POB is an independent oversight board, composed of public members that monitors and evaluates peer reviews conducted by SEC Practice Section (SECPS)

Subsidiary company exclusion features, Subsidiary company exclusion feature...

Subsidiary company exclusion features 1) The standard does not require consolidation of a subsidiary acquired when there is evidence that the control is intended to be temporar

Retirement of a partner, Retirement of a partner When one of the partners...

Retirement of a partner When one of the partners retires ante the others will continue trading, the n it is important that he gets a share of the goodwill that he helped create i

Calculate the standard deviation of ibm and att, Question: ...

Question: State of the Economy Probability of state occurring IBM Return (%) ATT Return (%)

Discuss the theoretical determinants , i. Explain carefully what is meant...

i. Explain carefully what is meant by a price earnings ratio. ii Utilising a valuation model identify and briefly discuss the theoretical determinants of the ratio. iii

Qualitative characteristics , Since 1968, Dracula Limited has traded in Don...

Since 1968, Dracula Limited has traded in Doncaster, South Yorkshire as a manufacturer of fancy-dress and theatrical costumes. It produces a wide range of general theatrical costum

Addmission of a partner, is it compulsory to give premium for goodwill whil...

is it compulsory to give premium for goodwill while entering into a business..

Calculate yield to maturity, Calculate Bond's Yield to Maturity Consid...

Calculate Bond's Yield to Maturity Consider a coupon bond that has a $1,000 per value and a coupon rate of 10%. The bond is currently selling for $1,150 and has 8 years to mat

Funding the investment by an issue of ordinary shares, Funding the investme...

Funding the investment by an issue of ordinary shares could tender several advantages to Springbank plc. Gearing would drop to 47% (3·5/7·4) fewer than half of the sector average o

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages