The following information is available for S Ltd. for the year ended 31 st March, 2025: Raw Material consumed 20% of COGS Raw Material Inventory…

Answer (a) Workings: (i) Calculation of Sales, Cost of Goods Sold and Gross Profit Fixed Assets Turnover = Sales Fixed Assets 3 = Sales 12,00,000 So, Sales = 12,00,000 x 3 = 36,00,000 And Cost of Goods Sold = 36,00,000 x 100 (100 + 12.5) = 32,00,000 Therefore, Gross Profit = 32,00,000 x 12.5% = 4,00,000 (ii) Calculation of Stock of Raw Materials Raw Material Consumed = COGS x 20% = 32,00,000 x 20% = 6,40,000 So, stock of raw material = 6,40,000 4 = 1,60,000 (iii) Calculation of Debtors Debtor Collection Period = 12 Receivable Turnover Ratio = 3 months Or Debtors = 36,00,000 X 3 12 = 9,00,000 (iv) Calculation of Total Assets Total Asset = Fixed Assets 40% = 12,00,000 x 100 40 = 30,00,000 So Total Liabilities including shareholder's fund = 30,00,000 (v) Calculation of Stock of Finished Goods Stock of Finished Goods = 32,00,000 x 0.75 12 = 2,00,000 (vi) Calculation of Current Assets and Fixed Assets Current Assets = Total Assets - Fixed Assets = 30,00,000 – 12,00,000 = 18,00,000 And Cash Balance = Current Assets – (Raw Material + Finished Goods + Debtors) = 18,00,000 – (1,60,000 + 2,00,000 + 9,00,000) = 5,40,000 (vii) Calculation of Shareholder's Fund Proprietary Ratio = Shareholders Fund Total Assets 0.3125 = Shareholders Fund 30,00,000 Shareholders Fund = 9,37,500 Balance Sheet as on 31 st March 2025 Liabilities (₹) Assets (₹) Shareholders' Fund 9,37,500 Fixed Assets 12,00,000 Long-term Debt 15,00,000 Stock of Raw Material 1,60,000 Current Liabilities (Balancing Figure) 5,62,500 Stock of Finished Goods 2,00,000 Debtors 9,00,000 Cash 5,40,000 30,00,000 30,00,000