The equity share capital of Sky Pack Ltd. as on 31 st March, 2024 was - 2,00,000. The relevant ratios of the company are as follows: Current debt to…
CA Intermediate · Financial Management and Strategic Management · PYQS · January 2025
The equity share capital of Sky Pack Ltd. as on 31 st March, 2024 was - 2,00,000. The relevant ratios of the company are as follows: Current debt to Total debt: 0.35Total debt to Owner's equity: 0.65Fixed assets to Owner's equity: 0.55Total assets turnover: 2.5 timesInventory turnover: 10 times You are required to prepare the Balance Sheet of Sky Pack Ltd. as on 31 st March, 2024.
Suggested Answer and Working Notes:
Working Notes Total debt = 0.65 x Equity share capital = 0.65 x 2,00,000 = 1,30,000 Current debt to total debt = 0.35. Current debt = 0.35 × 1,30,000 = 45,500 Long term debt = 1,30,000 -45,500 = 84,500Fixed assets = 0.55 × Equity share Capital = 0.55 × 2,00,000 = 1,10,000Total assets to turnover = 2.5 Times : Inventory turnover = 10 Times Hence, Inventory /Total assets = 2.5/10 = 1/4, Total assets = 3,30,000 Therefore Inventory = 3,30,000/4 = 82,500 Sky Pack Ltd Balance Sheet Liabilities ₹ Assets ₹ Equity share capital 2,00,000 Fixed assets 1,10,000 Current debt 45,500 Cash (balancing figure) 1,37,500 Long term debt 84,500 Inventory 82,500 3,30,000 3,30,000
Topics: Part-A: Financial Management
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