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Q No.1
Use the following selected financial information for Cascabel Corporation to answer
questions
Cascabel Corporation
Balance Sheet
December 31, 2015
Cascabel Corporation
Income Statement
For the Year Ended December 31, 2015
Net sales 345
Cost of goods sold 248
Gross profit 97
Operating expenses 74
Operating profit 23
Interest expense 8
Earnings before taxes 15
Income tax expense 4
Net profit 11
Additional information: Market price of stock is Rs.25. Firm declared and paid dividend 20% on
par value of stock.
Compute following ratios: Current ratio (2) Quick ratio (3)Debt ratio (4)Equity ratio
(5)Inventory turnover in days(use 360 days) (6) Receivable turnover in days(use 360 days) (7)
Earnings per share (8)Book value per share (9)Interest coverage ratio (10) Gross Profit ratio
Q No.2 The following data are from the U Guessed it Company’s financial statements. This company
is a manufacturer of board games for young adults. The market is fiercely competitive, therefore all
sales ($20 million) for the year 2016 were on credit. Given the following ratios, fill in the balance
sheet below:
U GUESSED IT CO.
BALANCE SHEET , 2016