The following information pertains to P Limited for the year ended 31 st March, 2025: Particulars Amount Sales 3,60,00,000 Rate of Income Tax 40%…

(i) Operating Expenses Net Profit = 8% on Sales = 8% x 3,60,00,000 = 28,80,000Add: Income Tax = 40% x 28,80,000/60% = 19,20,000Profit Before tax = 48,00,000Add: Debenture Interest = 3,36,000Profit before interest and tax = 51,36,000Sales = 3,60,00,000Less:Cost of goods sold - 1,44,00,000Profit before interest & tax 51,36,000 = 1,95,36,000Operating Expenses = 1,64,64,000 (ii) Share Capital and Reserves Return on Net worth is 30%, hence profit after tax of 28,80,000 is equivalent to 30% of Net Worth.Net worth x 30/100 = 28,80,000Net Worth = 28,80,000 x 100/30 = 96,00,000Ratio of Share Capital to Reserves = 6:4Share Capital = 96,00,000 x 6/10 = 57,60,000Reserves = 96,00,000 x 4/10 = 38,40,000 (iii) Closing Stock Inventory Turnover (based on cost of goods sold) = 12Cost of goods sold = 1,44,00,000Inventory Turnover Ratio = Cost of goods sold / Closing Stock = 12= 1,44,00,000/Closing StockTherefore, Closing Stock = 1,44,00,000/12 = 12,00,000 (iv) Fixed Assets Calculation of Total liabilities Interest on 14% Debentures = 3,36,000Therefore debentures = (3,36,000 x 100) / 14% = 24,00,000 Total of Liabilities Side Share Capital 57,60,000 Reserves 38,40,000 Debentures 24,00,000 Sundry Creditors 16,00,000 Total Liabilities 1,36,00,000 Current Ratio = 2:1Sundry Creditors = 16,00,000Current Assets / Current Liabilities = 2Current Assets / Sundry Creditors = 2Current Assets /16,00,000 = 2Current Assets = 2 x 16,00,000 = 32,00,000Fixed Assets = Total Liabilities - Current Assets= 1,36,00,000 -32,00,000 = 1,04,00,000