Fin621 Current Spring 2011 Final Term VU Paper [July 2011] Virtual University of Pakistan
TOTAL QUIZ =64
TOTAL MCQZ = 56 * 1 = 56
4 QSTN OF 3 NOS = 4 * 3 = 12
4 QSTN OF 5 NOS = 4 * 5 = 20
TOTAL QUIZ =65 TOTAL MARKS = 88
MOST OF THE MCQZ FROM PAST PAPERZZZ
LONG QSTN
YA 2 PAST PAPERZ MAIN SA THAY BQAI NEW THAY BUTT EASY THAY..
Question No: ( Marks: 5 )
Following is the balance sheet of the ABC Company.
ABC Corporation
Balance Sheet
Mar. 31, 1991
Assets
Cash Rs. 12,500
Notes receivables 104,000
Accounts receivables (net) 68,500
Inventories at cost 50,000
Plan & equipment (net of depreciation) 646,000
Total assets Rs. 881,000
Liabilities & Stockholder’s equity
Accounts payable Rs. 72,000
Notes payable 54,500
Accrued liabilities 6,000
Common stock (60,000 shares, Rs. 10par)
600,000
Retained earnings 148,500
Total liabilities and owner’s equity Rs. 881,000
Requirement:
Calculate the current ratio and quick ratio for both years. (2.5+ 2.5)
Current Ratio=Current Assets / Current Liabilities·
= 235,000 / 132,500
= 1.77
Quick Ratio = Current Assets - Inventories / Current Liabilities·
= (235,000 – 50,000) / 132,500
= 185,000 / 132,500
= 1.39
Question No: (Marks: 5 )
Consider the following information.
Cash Rs. 15,000
Beginning net receivables Rs. 55,000
Ending net receivables Rs. 57,000
Net sales Rs. 640,000
Net credit sales Rs. 480,000
Cost of goods sold Rs. 390,000
Average inventory Rs. 62,000
Requirement:
Compute the receivable turnover to the nearest tenth.
Receivables turnover ratio = Net credit sales /Average Debtors
= 480,000 / [(55,000+57,000)/2]
= 480,000 / 56,000
= 8.57
