Personal Reflection Question – Total Marks  30 (max word limit- 300)

1. Balance Sheet of ABC Ltd. as on 31st March      2020

Liabilities

Amount

Assets

Amount

Share   Capital

16.00

Fixed   Assets (Net)

60.00

Investments

16.60

Reserves   & Surplus

22.00

Cash   & Bank

00.20

Secured   Loans

21.00

Debtors

11.80

Unsecured   Loans

25.00

Inventories

10.60

Current   Liabilities

16.00

Prepaid   Expenses

00.80

Total

100.00

Total

100.00

Profit and loss account for the year ended on 31st March 2020

Particulars

Amount

Particulars

Amount

Opening   Stock

13

Sales

105

Purchases

69

Closing   Stock

15

Wages

12

Other expenses

10

Gross   Profit

16

Total

120

Total

120

Admin.   expenses

1.50

Gross   Profit b/d

16

Selling   expenses

2.00

Depreciation

2.50

Interest

1.00

Net   Profit

9.00

Total

16.00

Total

16.00

Income   tax

4.00

Net Profit   b/d

9.00

Equity   dividend

3.00

Retained   earnings

2.00

Total

9.00

Total

9.00

Calculate  the following :- (20 Marks )

1. Current Ratio
2. Quick Ratio
3. Inventory Turnover Ratio
4. Debtors Turnover Ratio
5. Fixed Assets Turnover Ratio
6. Debt to Equity Ratio
7. Gross Profit Ratio
8. Net Profit Ratio
9. Return on shareholders equity.
10. Average Collection Period

2. Imagine yourself as an entrepreneur of ABC LTD. ABC Ltd is a new startup dealing with high-end -organic products ( FMCG). Based on the given scenario- answer the following questions. (10 Marks)

• Which source of finance would you prefer for      the start up – Debt / Equity or both? Provide your      reason for the same.
• After 2 successful years, you have planned to      expand your business to Organic Cosmetic Products as well. Detail on the      external source of funds that you prefer.