Following information and ratios are given in respect of Simandhar Limited for the year ended 31.03.2025: Particulars Ratio Liquid Ratio 2.0 Cash…

WN-1: Calculation of Total Current Assets using Current Ratio Current Ratio = CA CL 3.5 = CA 2,80,000 ∴ CA = 9,80,000 WN-2: Calculation of Inventory using Liquid Ratio Liquid Ratio = CA- Inventory CL 2 = 9,80,000 - Inventory 2,80,000 ∴ Inventory = 4,20,000 WN-3: Calculation of Cash & Bank balance using Cash Asset Ratio Cash asset ratio is nothing but just the cash ratio of the company Cash ratio = Cash & Cash Equivalents + Marketable securities CL 0.36 = Cash & Cash Equivalents + 0 2,80,000 ∴ Cash & Cash Equivalents = 1,00,800 WN-4: Calculation of Sales using Inventory turnover ratio Inventory turnover ratio = COGS Avg Inventory Avg Inventory = Opening + Closing 2 Now, let the opening inventory be 'x' and as mentioned closing inventory would be 20% more than the opening inventory i.e. 1.2x ∴ Opening inventory = 4,20,000 × x (1.2x) ∴ Opening inventory = 3,50,000 ∴ Avg Inventory = 4,20,000 +3,50,000 2 ∴ Avg Inventory = 3,85,000 Now, using inventory turnover ratio 6 = COGS 3,85,000 ∴ COGS = 23,10,000 Sales = COGS + GP x = 23,10,000 + 0.20x ∴ Sales = 28,87,500 WN-5: Calculation of Receivables using Receivables collection period Receivables Collection Period = Receivables Credit Sales x 360 30 = Receivables 28,87,500 x 360 ∴ Receivables = 2,40,625 WN-6: Calculation of Short-term Advances Current Assets = Inventory + Receivables + Cash & Cash equivalents + Short term advances 9,80,000 = 4,20,000 +2,40,625 +1,00,800 + x ∴ Short term advances = 2,18,575 WN-7: Calculation of Non-current Assets (Fixed asset) using non-current assets turnover ratio Non-current asset turnover ratio = Sales / Non-current assets 0.80 = 28,87,500 X ∴ Non-current asset (Fixed assets) = 36,09,375 WN-8: Calculation of Net profit available for Equity shareholders using Equity dividend coverage ratio Equity dividend coverage ratio = Net Profit for Equity shareholders Equity Dividend 2.10 = X 2,50,000 ∴ Net Profit for Equity shareholders = 5,25,000 WN-9: Calculation of No of equity shares and amount of equity share capital EPS = Net Profit for Equity shareholders No of equity shares 3 = 5,25,000 X ∴ No of equity shares = 1,75,000 ∴ Amount of Equity Share capital = 1,75,000 x 10 = 17,50,000 WN-10: Calculation of Reserves using Proprietary ratio Proprietary Ratio = Proprietor's funds Total Assets Total assets = Non-current assets + Current Assets = 36,09,375 +9,80,000 = 45,89,375 0.72 = Proprietor's funds 45,89,375 ∴ Proprietor's funds = 33,04,350 ∴ Reserves = 33,04,350 (-) ₹ 17,50,000 ∴ Reserves = 15,54,350 Balance Sheet as of 31/03/2025 Liabilities Amount (₹) Assets Amount (₹) Equity Share Capital (Face Value - 10) (WN-9) 17,50,000 Fixed Assets (WN-7) 36,09,375 Reserves (WN-10) 15,54,350 Receivables (WN-5) 2,40,625 Long term Debentures (Bal. figure) 10,05,025 Inventory (WN-2) 4,20,000 Current Liabilities 2,80,000 Cash & Bank balance (WN-3) 1,00,800 Short term advances (WN-6) 2,18,575 TOTAL 45,89,375 TOTAL 45,89,375