Financial Mgmt Problem

Seems you are in Pe2 . hence you can refer Khan and Jains Book which is good
As regards your solution:
I have Partly worked out your solution I am not giving complete solution because I am not sure after a certain point

Solution:

See The trick is Start from the figure which is given in this case sales is given
Hence we now proceed as follows

Sales 15 lakhs and GP ratio is 20%
This Cost of Goods sold is Rs 12 Lakhs (80%)

Stock Turnover Ratio:
Formula is Cost of Goods Sold/Avg Inventory
Since Closing Stock is specified in brackets
Modified Formula is
CGS/Cl Stock
Thus 6 times = 12lakhs/cl stock
Thus Closing Stock is 2 lakhs

Debtor Turnover ratio
Formula is
Net Credit Sales/Avg Debtors
Assume all Sales are on Credit
2 months =  15 Lakhs/Avg Debtors
Thus Debtors is 7.5 Lakhs

Fixed Asset Turnover Ratio
CGS/Avg Fixed Assets
1.2 = 12 Lakhs/FA

Thus Fixed Assets = 10 Lakhs

Fixed Assets To networth Ratio
 FA/Networth

1.25 = 10Lakhs/NetWorth

Net Worth = Rs 800000

Now Net Worth is Current Assets – Current Liabilities
              0.75       = 1.75 – 1.00
(Current Ratio is 1.75 this means Current Liabilities is 1.00)

I feel I am 100% right upto here.
Now i am not sure after this . I will work it out when I am free. Thanks for reading

Hi Skanka,

Tks. so much for at least working half out. I hope u will be able to complete it for me.

Tks. again. God bless.