A. What are Financial Ratios? What are its advantages and disadvantages?
B. From the following data, prepare a Balance Sheet.
Debt collection period 2 months.
Gross profit ratio 25%
Consumption of Raw Material 40% of Cost of Sales
Stock of Raw Material 4 months consumption.
Finished Goods Stock 20% of Turnover at cost.
Fixed Assets to Current Assets 1:1
Current Ratio 2:1
Long Term Loan to Liability 1:3
Capital to Reserve 5:3
Fixed Assets to Turnover 1:2
Fixed Assets Rs.1050000