Question
For knowing the cash (liquidity) position of a company
which of the ratio will be used? ÂSolution
The quick ratio is a measure of how well a company can meet its short-term financial liabilities. Also known as the acid-test ratio, it can be calculated as follows: (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.
Which ratio measures a company's ability to meet its short-term obligations?
A firm issues debentures of ₹10,00,000 at 10% coupon rate, redeemable after 5 years at 5% premium. Flotation cost = 2%. Calculate effective cost of de...
A company has Net Sales of ₹1,000 lakhs, Net Profit of ₹80 lakhs, Total Assets of ₹750 lakhs, and Equity of ₹250 lakhs.
Calculate Return ...
ABC Ltd., a non- financial enterprise presents the following information for the year ended 31st March 2025:
• Proceeds from issue of equity sh...
If a purchase return of ₹1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ a...
Company A and Company B both have a net income of ₹5 crores. However, Company A has equity of ₹50 crores while Company B has equity of ₹20 crores....
Two firms, Firm A and Firm B, are identical in all respects except their capital structure.
• Firm A (Unlevered): It is entirely equity finance...
A company has Rs. 20,00,000 equity (Ke = 15%) and Rs. 10,00,000 debt (Kd = 10% post-tax). Calculate Weighted Average Cost of Capital (WACC).
The ratio that measures the efficiency of total assets usage is:
A company refinances a short-term loan (due in 4 months) after the balance sheet date but before the financial statements are authorised. Management arg...
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