Personal Reflection Question – Total Marks 30 (max word limit- 300)
Balance Sheet of ABC Ltd. as on 31st March 2020

Liabilities
Amount
Assets
Amount

Share Capital
16.00
Fixed Assets (Net)
60.00

Investments
16.60

Reserves & Surplus
22.00
Cash & Bank
00.20

Secured Loans
21.00
Debtors
11.80

Unsecured Loans
25.00
Inventories
10.60

Current Liabilities
16.00
Prepaid Expenses
00.80

Total
100.00
Total
100.00

Profit and loss account for the year ended on 31st March 2020

Particulars
Amount
Particulars
Amount

Opening Stock
13
Sales
105

Purchases
69
Closing Stock
15

Wages
12

Other expenses
10

Gross Profit
16

Total
120
Total
120

Admin. expenses
1.50
Gross Profit b/d
16

Selling expenses
2.00

Depreciation
2.50

Interest
1.00

Net Profit
9.00

Total
16.00
Total
16.00

Income tax
4.00
Net Profit b/d
9.00

Equity dividend
3.00

Retained earnings
2.00

Total
9.00
Total
9.00
Calculate the following :- (20 Marks )
Current Ratio
Quick Ratio
Inventory Turnover Ratio
Debtors Turnover Ratio
Fixed Assets Turnover Ratio
Debt to Equity Ratio
Gross Profit Ratio
Net Profit Ratio
Return on shareholders equity.
Average Collection Period
2. Imagine yourself as an entrepreneur of ABC LTD. ABC Ltd is a new startup dealing with high-end -organic products ( FMCG). Based on the given scenario- answer the following questions. (10 Marks)
Which source of finance would you prefer for the start up – Debt / Equity or both? Provide your reason for the same.
After 2 successful years, you have planned to expand your business to Organic Cosmetic Products as well. Detail on the external source of funds that you prefer.