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

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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

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Assignment, 2000

2000

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