Reema Industries is into trading business. Since its establishment it has seen a phenomenal growth in both its market share and profitability. The…

Reema Industries is into trading business. Since its establishment it has seen a phenomenal growth in both its market share and profitability. The company enjoys the confidence of its shareholders who have been rewarded with growing dividends year after year. The company has never defaulted on its loan payments and enjoys a favourable face with its lenders, which include financial institutions, commercial banks and other private debenture holders. Now the Reema Industries is looking to expand their business and for which they need further funds. Mr. Rishi, the CEO of the company wants their senior management to prepare the report including ratio analysis to be presented before investors. The Balance Sheet and other financial information are shown below. Liabilities ₹ Assets ₹ Share Capital 1,00,000 Fixed Assets 1,70,000 Less: Depreciation 14,000 1,56,000 Reserve and Surplus 80,000 Current Assets: 9% Preference Share Capital 20,000 Cash 22,000 8% Debentures 50,000 Investments 25,000 Current Liabilities: Sundry Debtors 30,000 Creditors 10,000 Stock 50,000 Bills Payable 15,000 Outstanding Expenses 5,000 Provision for Tax 3,000 2,83,000 2,83,000 Other information: Net sales - 1,00,000Cost of goods sold - 66,500Net income before tax 20,000Average creditor days is 60 days. Assume 360 days in a year.Tax rate 30% From the above financial information, Senior management asked you to calculate the following ratio for their analysis: