Class 12 Finance Financial Analysis Notes and Important Questions
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Important Questions
Following Balance Sheet of a company is given as:
Particulars | Assets (Rs.) | Liabilities (Rs.) |
|---|---|---|
Share Capital | — | 5,00,000 |
Bank Loan | — | 2,00,000 |
Creditors | — | 1,00,000 |
Retained Earnings | — | 2,50,000 |
Fixed Assets | 6,00,000 | — |
Current Assets | 4,50,000 | — |
Total | 10,50,000 | 10,50,000 |
Other Information:
i) Current assets include Rs. 80,000 for inventory and Rs. 20,000 for cash.
ii) Net Profit = Rs. 1,20,000
iii) Sales = Rs. 18,00,000
Required:
a) Liquid Ratio
b) Debt-Equity Ratio
c) Inventory Turnover Ratio
d) Fixed Assets Turnover Ratio
e) Return on Total Assets
f) Return on Equity
g) Net Profit Ratio
h) Find the amount of Gross Profit if gross profit margin is 40%.
Following information of Balance Sheet given as:
Items | Assets | Liabilities |
|---|---|---|
Cash | 1,00,000 | |
Debtors | 2,00,000 | |
Machinery | 4,00,000 | |
Stock | 50,000 | |
Capital | 3,00,000 | |
Debenture | 1,00,000 | |
Creditors | 80,000 | |
Overdraft | 1,20,000 | |
Retained Earnings | 1,50,000 | |
Total | 7,50,000 | 7,50,000 |
Additional Information:
i) Net profit for the year: Rs. 1,00,000
ii) Sales: Rs. 15,00,000
Required:
a) Current Ratio
b) Liquid Ratio
c) Inventory Turnover Ratio
d) Debt-Equity Ratio
e) Total Assets Turnover Ratio
f) Return on Capital Employed
g) Return on Equity
h) Net Profit Ratio
Following Balance Sheet is given as:
Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
Share capital | 4,00,000 | Building | 3,00,000 |
Loan | 1,00,000 | Machinery | 2,00,000 |
Creditors | 50,000 | Stock | 1,00,000 |
Outstanding expense | 30,000 | Debtors | 2,00,000 |
Overdraft | 20,000 | Cash | 40,000 |
Retained Earnings | 3,00,000 | Bank | 60,000 |
Total | 9,00,000 | Total | 9,00,000 |
Additional Information:
i) Sales for the year: Rs. 6,00,000
ii) Net profit: Rs. 2,40,000
iii) Working days in the year: 360 days
Required:
a) Current Ratio
b) Quick Ratio
c) Debt-Equity Ratio
d) Net Profit Ratio
e) Return on Total Assets
f) Return on Total Capital
g) Debtors Turnover Ratio
h) Days Sales Outstanding (DSO)
Write the meaning of Inventory turnover ratio.
Write the meaning of fixed assets turnover ratio.
Mention any two limitations of financial ratio analysis.
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Exam
Past Question Analysis
Historical exam-pattern data from past NEB question papers — not a prediction of future questions.
7
Question Items
20
Total Marks
4
Papers Appeared In
| Year | Question Items | Marks |
|---|---|---|
| 2083 | 2 | 9 |
| 2082 | 2 | 9 |
| 2081 | 2 | 1 |
| 2080 | 1 | 1 |
This page covers Financial Analysis, chapter 3 of 10 in the Class 12 Finance syllabus set by the National Examination Board (NEB). 7 important questions for this chapter are available, each with a model answer.
For subjects like this one, examiners tend to reuse similar question patterns year to year — comparing this chapter's important questions against recent old NEB papers is one of the more efficient ways to revise.