1 Each question carries 3 marks. 0.5 mark will be deducted for every wrong answer.

X Ltd. has equity share capital of Rs. 8,40,000 and retained earnings of Rs. 12,60,000. Face value of each
share is Rs. 10 and current market price is Rs. 20. Company has issued 15% preference share capital of Rs.
6,00,000. If it had a profit after tax of Rs. 9,00,000 this year and paid Rs. 3,36,000 by way of equity
dividend, what is the return on equity ?
0 I do not want to answer this Question
1 a) 2.65%
2 38.6%
3 40%
4 32.1%
Correct Answer: 2 Your Answer: 2 Points Awarded: 3

2 Each question carries 3 marks. 0.5 mark will be deducted for every wrong answer.

Birla textiles provides the following information:

Long-term debts Rs. 16,00,000

Equity funds Rs. 28,12,000

EBIT Rs. 12,00,000

Interest Charges Rs. 1,60,000

Temporary investments Rs. 2,00,000

The debt equity ratio and interest coverage ratio are

0 I do not want to answer this Question
1 0.57, 7.5 times
2 0.42, 6.7 times
3 0.67, 8.6 times
4 0.33, 7.1 times
Correct Answer: 1 Your Answer: 1 Points Awarded: 3

3 Each question carries 3 marks. 0.5 mark will be deducted for every wrong answer.

The following information is extracted from the financial statements of a company:

Cost of goods sold Rs. 28,00,000

 Sales Rs. 40,00,000

Average debtors Rs. 3,60,000

Average stock Rs. 20,00,000

Average assets Rs. 60,00,000

Net profit Rs. 10,40,000

Find debtors turnover ratio and stock turnover ratio.

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1 12 times, 1.3 times
2 11.1 times, 1.4 times
3 11.1 times, 1.2 times
4 12 times, 1.3 times
Correct Answer: 2 Your Answer: 2 Points Awarded: 3

4 Each question carries 3 marks. 0.5 mark will be deducted for every wrong answer.

From the following information, the market price of company X is

Profit after tax Rs. 150,000

No of shares 50,000

P/E Ratio 8

Current ratio 1.5

0 I do not want to answer this Question
1 Rs. 21
2 Rs. 20
3 Rs. 12
4 Rs. 24
Correct Answer: 4 Your Answer: 0 Points Awarded: 0

5 Each question carries 3 marks. 0.5 mark will be deducted for every wrong answer.

Net sales: Rs. 15 cr

EBIT as a percentage of sales 12%

 Equity capital Rs. 5 cr

13% Preference share Rs. 1 cr

15% debt capital Rs. 3 cr

Tax Rate 40%

Return on net worth of the company is

0 I do not want to answer this Question
1 13%
2 12%
3 12.6%
4 13.6%
Correct Answer: 4 Your Answer: 0 Points Awarded: 0

6 Each question carries 3 marks. 0.5 mark will be deducted for every wrong answer.

From the following information, the inventory is

Current ratio 2.6:1

Liquid ratio 1.5:1

Current liabilities Rs. 40,000

0 I do not want to answer this Question
1 Rs. 55,000
2 Rs. 44,000
3 Rs. 22,000
4 Rs. 1,64,000
Correct Answer: 2 Your Answer: 2 Points Awarded: 3

7 Each question carries 3 marks. 0.5 mark will be deducted for every wrong answer.

Sri Ram Industries has furnished the following details:

Inventory Rs. 80,000

Prepaid expenses Rs. 2,000

Quick ratio 2.5:1

 Current liabilities Rs. 50,000

Find current ratio

0 I do not want to answer this Question
1 4.14
2 4.10
3 3.16
4 5.20
Correct Answer: 1 Your Answer: 2 Points Awarded: -0.5

8 Each question carries 3 marks. 0.5 mark will be deducted for every wrong answer.

Cash sales Rs. 80,000

Credit sales Rs. 2,00,000

Returns inward Rs. 10,000

Opening stock Rs. 25,000

Closing Stock Rs. 30,000

Gross profit ratio is 25%. The inventory turnover ratio based on average inventory is
0 I do not want to answer this Question
1 6.54 times
2 7.36 times
3 6.98 times
4 5.55 times
Correct Answer: 2 Your Answer: 4 Points Awarded: -0.5

9 Each question carries 3 marks. 0.5 mark will be deducted for every wrong answer.

If current ratio is 2.6:1 and current liabilities are Rs. 40,000, the current assets are
0 I do not want to answer this Question
1 Rs. 109,000
2 Rs. 232, 000
3 Rs. 154,000
4 Rs. 104,000
Correct Answer: 4 Your Answer: 4 Points Awarded: 3
10 Each question carries 3 marks. 0.5 mark will be deducted for every wrong answer.

A company sells on cash as well as on credit. The following information has been extracted from its financial statements:

Gross total sales Rs. 6,00,000

Cash sales Rs. 110,000

Sales returns Rs. 120,000

Debtors at the end Rs. 186,000

Bills receivable at the end Rs. 48,000

Total creditors at the end Rs. 25,000

The average collection period is

0 I do not want to answer this Question
1 210 days
2 175 days
3 231 days
4 115 days
Correct Answer: 3 Your Answer: 2 Points Awarded: -0.5