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

Scope, scope of financial accounting

scope of financial accounting

Bond''s yield to maturity, A 15-year, 14% semiannual coupon bond with a par...

A 15-year, 14% semiannual coupon bond with a par value of $1,000 may be known as in 4 years at a call price of $1,075. The bond sells for $1,050. (Suppose that the bond has just be

Calculate the expected present value, Problem1 Derive from first princi...

Problem1 Derive from first principles an expression for the variance of the benefits payable under an endowment assurance with benefits payable at the end of the year of death.

Hat is the after-tax cash flow from the salvage value, 48 Morgado Inc. has ...

48 Morgado Inc. has provided the following data to be used in evaluating a proposed investment project: Initial investment $130,000 Annual cash receipts $78,000 Life of th

Compute basic and diluted earnings per share, The following information was...

The following information was taken from the books and records of Ludwick, Inc.: 1. Net income $ 280,000 2. Capital structure: a. Convertible 6% bonds. Each of the 300, $1,000 bond

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

The statement of affairs-bankruptcy accounts, The Statement of Affairs ...

The Statement of Affairs The statement of affairs sets out: (a) The various assets of the debtor, at the values they are expected to realise; (b) The creditors, classified acc

Bad debts, how to do the calsulations for bad debts

how to do the calsulations for bad debts

Calculate the npv and arr, Calculate the NPV and ARR The manager of XY...

Calculate the NPV and ARR The manager of XYZ Ltd has identified a market for a new product that she estimates can be sold for $12 per unit. Research indicates that the busines

Liberal credit standards, In order to enhance sales from their present annu...

In order to enhance sales from their present annual $35 million, ABC Company, a retailer, is considering more liberal credit standards. Presently, the firm has an average collectio

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages