About this Assignment Ratio analysis is a type of financial statement analysis used to obtain a quick indication of an organization's financial performance in various key areas. This assignment will...

1 answer below »

View more »
Answered Same DayMay 10, 2021

Answer To: About this Assignment Ratio analysis is a type of financial statement analysis used to obtain a...

Aarti J answered on May 13 2021
148 Votes
Answer 1
        Working capital    1.85
        Current Assets    24000
        Less: Current liabilities    13000
        Quick ratio    1.69
        Current Assets    24000
        Les
s: Inventory    2000
        Divide: Current liabilities    13000
        Earnings per share    1.2
        Net income    12000
        Divide: Outstanding shares    10000
        Price earning ratio    16.67
        Price    20
        Divide: EPS    1.2
        Debt equity ratio    1.42
        Total Debt    108000
        Divide: Total equity    76000
        Return on equity    15.79%
        Net income    12000
        Divide: Total equity    76000
        Working capital helps in analyzing the capital which is available to do the day to day operations of the company. It is calculated as current assets less current liabilities. When the working capictal is positive, then the company has more current assets as compared to the current liabilities which shows that the company is able to take care of the short term obligations of the firm
        Quick ratio helps in calculating the readily available assets. If the inventory is high, then the quick ratio would be low while with low inventory, the quick ratio would be almost same as current ratio
        Earning per share helps in analyzing the earnings by the shareholders on the basis of the net income. It is claculated as net income divided by outstanding shares
        Price earning ratio helps in analyzing the relationship between the market price of the shares and the EPS of the company.
        Debt equity ratio helps in analyzing the...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
April
January
February
March
April
May
June
July
August
September
October
November
December
2025
2025
2026
2027
SunMonTueWedThuFriSat
30
31
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
00:00
00:30
01:00
01:30
02:00
02:30
03:00
03:30
04:00
04:30
05:00
05:30
06:00
06:30
07:00
07:30
08:00
08:30
09:00
09:30
10:00
10:30
11:00
11:30
12:00
12:30
13:00
13:30
14:00
14:30
15:00
15:30
16:00
16:30
17:00
17:30
18:00
18:30
19:00
19:30
20:00
20:30
21:00
21:30
22:00
22:30
23:00
23:30