Class 12 Finance Financial Analysis Notes and Important Questions
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Important Questions
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)
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
Mention any two limitations of financial ratio analysis.
Write the meaning of fixed assets turnover ratio.
This page covers Financial Analysis, chapter 3 of 10 in the Class 12 Finance syllabus set by the National Examination Board (NEB). 4 important questions for this chapter are available, each with a full solution.
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.