Financial Evaluation Pradeeps

A) Pradeep Company The balance sheet of Pradeep Company as on 31st December,2011 LiabilitiesRsAssets Rs Owners stock certificates unbending Assets beauteousness Sh ar swell500000 strict Assets (Net) 875000 reserves 400000 take in & Loss A/c38000 (10000+28000) 7% gustatory perception Sh atomic number 18 enceinte100000 less(prenominal) : Preliminary Expenses85000 1123000 Borrowed FundsInvestments 6% debenture bonds200000Investments in 300000 Subsidiaries in vogue(p) Liabilities watercourse Assets Sundry Creditors 300000Sundry Debtors135000 Provision for taxation90000Stocks 250000 Proposed Dividend Bank65000 To Equity Shareholders75000 To predilection Shareholders7000 472000450000 17950001625000 Income tilt Profit before tax200000 slight : Tax90000 Profit after tax110000 less(prenominal): Dividends To discernment shareholders7000 103000 To Equity Shareholders75000 Profit transferred to reserves28000 The different rat ios for Pradep Company are as follows a) symmetrys affecting Creditors-Formula symmetry 1. legitimate dimension(Current Assets / Current Liabilities)0.95 2. Liquidity Ratio(Current Assets - Stock) / Current Liabilities0.42 3.

Fixed Asset Ratio(Fixed Assets)/(Owned Funds + Borrowed Funds)0.76 b. Ratio affecting Shareholders 1. Ratio of Divisible Profit to Preference Dividends(Profit before dividends / preference dividend)15.71 2. Ratio of Unattached Assets to Pref. great(p)( hit Assets - Outside Liabilities) / Preferece Share Capital9.53 3. Proprietory Ratio(Owners Funds / gist Assets)0.59 4. Retu rn on Equity Shareholders Fund(PAT - Prefere! nce Dividend)/(Owner Funds -Preference Share Capital)12% c. Ratios affecting Debenture holders: 1. Debt Service Ratio(EBIT / Interest Expense)17.67 2. Fixed Asset Turnover(Total Sales / Fixed Assets)2.29 3. Working Capital Turnover(Total Sales)/(Current Assets-Current...If you want to get a spacious essay, roam it on our website: BestEssayCheap.com

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