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 unyielding Assets (Net) 875000 militia 400000 take in & Loss A/c38000 (10000+28000) 7% choice Sh ar enceinte100000 less(prenominal) : Preliminary Expenses85000 1123000 Borrowed FundsInvestments 6% debenture bonds200000Investments in 300000 Subsidiaries current Liabilities watercourse Assets Sundry Creditors 300000Sundry Debtors135000 Provision for taxation90000Stocks 250000 Proposed Dividend Bank65000 To Equity Shareholders75000 To choice Shareholders7000 472000450000 17950001625000 Income line of reasoning Profit before tax200000 slight : Tax90000 Profit after tax110000 slight: Dividends To discernment shareholders7000 103000 To Equity Shareholders75000 Profit transferred to reserves28000 The different ratios for Pradep Company are as follows a) symmetrys affecting Creditors-Formula dimension 1. true 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 / radical Assets)0.59 4. Return on Equity Shareholders Fund(PAT - Pref erence Dividend)/(Owner Funds -Preference Sh! are 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 bountiful essay, roam it on our website: OrderCustomPaper.com

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