Net Profit Ratio. =Earning after tax/sales*100

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Bethanie Webster
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1 Net Profit Ratio =Earning after tax/sales*100

2 Particulars Amount Values From Net Profit(A) 10,61,197 P&L A/c Taxes (B) 21,380 Balance sheet Interest (C) 4,36,567 P & L A/c Depreciation (D) 2,70,518 P & L A/c EAT A-(B+C+D) 3,32,732 Particulars Amount Values From 0% Sales 1,93,63,950 P&L A/c VAT 1,99,59,270 P&L A/c VAT 5% 1,81,66,163 P&L A/c Total Sales 5,74,89,383 P&L A/c Net Profit Ratio = 3,32,732 / *100= 0.58%

3 Debt Equity Ratio (This Ratio Indicates the relative Proportions of debt and equity in financing the firm s assets) =Outsider Funds(Total Debts) Shareholder funds or Equity Total Debts=( Secured Loans + Unsecured loans)

4 Particulars Amount Values from Secured Loan 25,67,751 Balance sheet Un Secured Loan 3,71,152 Balance Sheet Total 29,38,903 Particulars Amount Values from Owner Fund 56,23,856 Trial Balance Sheet Total Equity 56,23,856 Debt Equity Ratio = 29,38,903/56,23,856 = 0.52

5 Current Ratio (It establishes the relationship between Current Assets and Current Liabilities) = Current Asset Current Liabilities

6 Current Assets Current Liabilities Particulars Amount Particulars Amount Cash in Hand 1,34,448 Accounting charges payable 27,000 Cash at Bank 38,316 ESI Payable 4,198 Closing Stock 96,00,490 PF Payable 33,413 Advance Tax 55,000 Professional Fee Payable Salary & Wages Payable Sundry Creditors 30,000 1,78,646 25,32,079 Vat Payable 21,380 Total 98,28,254 28,26,716 Current Ratio = 98,28,254/28,26,716 = 3.48

7 Return on Capital Employed (It measures how efficiently a company can generate profits from its capital employed) = Earnings Before Interest and Tax Capital Employed Capital Employed = Total Debts+ Total Equity

8 Particulars Amount Values From Net Profit(A) 10,61,197 P&L A/c Depreciation (D) 2,70,518 P & L A/c EBIT (A-D) 7,90,679 Particulars Amount Values from Secured Loan 25,67,751 Balance sheet Un Secured Loan 3,71,152 Balance Sheet Owner Fund 56,23,856 Trial Balance Sheet Drawings(-) 1,97,000 Trial Balance Sheet Total 83,65,759 Return on Capital Employed= 7,90,679 / 83,65,759*100 = 9.45%

9 Operating Profits (It is the profit earned from the company s normal course of Business only) Operating Profits= Sales Revenues-Cost of Goods Sold+ Discount Received Operating Expenses Cost of Goods=Opening Stock + Purchase Closing Stock

10 Sales Revenues Particulars Amount Values From 0 % Sales 1,93,63,950 P & L A/C Statement VAT ,99,59,270 P & L A/C Statement VAT 5% 1,81,66,163 P & L A/C Statement Total Sales Revenues 5,74,89,383 Opening Stock Particulars Amount Values From Opening Stock 98,25,245 P & L A/C Statement Purchase Particulars Amount Values From 0 % Purchase 1,23,85,746 P & L A/C Statement Coolie 1,145 P & L A/C Statement CST 2% 15,568 P & L A/C Statement CST Purchase 34,93,780 P & L A/C Statement HD 45 P & L A/C Statement Handling Charges 2,702 P & L A/C Statement HC 167 P & L A/C Statement Lorry HIRE 1598 P & L A/C Statement ROUND OFF 2 P & L A/C Statement VAT 14.5% 1,99,58,878 P & L A/C Statement VAT 15% 1,58,61,307 P & L A/C Statement TOTAL to Purchase 5,17,20,939

11 Operating Expenses Particulars Amount Values From Accounting Charges 24,000 P & L A/C Statement Bank Charges 22,537 P & L A/C Statement Bank Interest 3,46,343 P & L A/C Statement Bank Processing 8,946 P & L A/C Statement Batta 2,15,170 P & L A/C Statement Building Insurance 642 P & L A/C Statement Depreciation 2,70,518 P & L A/C Statement Donation 8,400 P & L A/C Statement ESI Paid 36,768 P & L A/C Statement ESI Penalty 289 P & L A/C Statement ESI PF Consultancy 18,000 P & L A/C Statement Fuel Expenses 1,23,210 P & L A/C Statement Interest on TMB Loan 90,224 P & L A/C Statement KIDSA Association Fees 4,000 P & L A/C Statement PF Paid 2,12,316 P & L A/C Statement Packing Charges 1,54,554 P & L A/C Statement PF Penalty 542 P & L A/C Statement Printing & Stationary 58,272 P & L A/C Statement Professional Fees 25,000 P & L A/C Statement Shop Maintenance 44,040 P & L A/C Statement Staff Welfare 2,27,300 P & L A/C Statement Stock Insurance 7,274 P & L A/C Statement TNEB 4,23,878 P & L A/C Statement Telephone expenses 36,489 P & L A/C Statement VAT Audit Fees 8,000 P & L A/C Statement Vehicle Insurance 32,224 P & L A/C Statement Total Operating Expenses 23,98,936

12 Closing Stock Particulars Amount Values From Closing Stock (Finished Goods) 96,00,490 P & L A/C Statement Indirect Income Particulars Amount Values From Discount & Display 2,52,944 P & L A/C Statement Incentive Received 9,000 P & L A/C Statement Total Indirect Income 2,61,944 Cost of Goods Sold Particulars Amount Values From Opening Stock 98,25,245 Purchase 5,17,20,939 Less Closing Stock 96,00,490 Total 5,19,45,694

13 Particulars Amount Values From Total Sales Revenues 5,74,89,383 Less Cost of Goods sold 5,19,45,694 Add Indirect Income 2,61,944 Less Operating Expenses 23,98,936 Operating Profits 34,06,697 Operating Profits = 34,06,697

14 Non operating Profits (It shows any profit or loss generated by activities outside of the core operating activities of a business) = Non operating income Non Operating Expenses

15 Non Operating Income Particulars Amount Values From Income NIl P & L A/C Statement Non Operating Expenses Particulars Amount Values From Tax Expenses 21,380 P & L A/C Statement Non operating Profits = = /-

16 EBIDTA/ PBIDTA (It measures a company s annual earnings before interest payments, taxes, depreciation and amortization. It shows a company s earnings based solely on their operations) =Net profit + (Taxes + Interest + Depreciation + Amortization)

17 Particulars Amount Values From Net Profit(A) 10,61,197 P&L A/c Taxes (B) 21,380 Balance sheet Interest (C) 4,36,567 P & L A/c Depreciation (D) 2,70,518 P & L A/c EBIDTA (A+B+C+D) 17,89,662 EBIDTA = 17,89,662

18 EBIT/ PBIT (It measure of a firm s profit that includes all expenses except interest and income tax expenses) =Net profit + (Taxes + Interest )

19 Particulars Amount Values From Net Profit(A) 10,61,197 P&L A/c Taxes (B) 21,380 Balance sheet Interest (C) 4,36,567 P & L A/c EBIT (A+B+C) 15,19,144 EBIT = 15,19,144

20 EBT/ PBT (Earning Before Tax; it helps give an investor a good idea of changes in a company s profits or earnings from year to year) =Net profit +Taxes

21 Particulars Amount Values From Net Profit(A) 10,61,197 P&L A/c Taxes (B) 21,380 Balance sheet EBT (A+B) 10,82,577 EBT = 10,82,577

22 EAT/ PAT (Earnings after Tax which is further used by the company to pay Dividend to the shareholders) =Net profit after tax

23 Particulars Amount Values From Net Profit(A) 10,61,197 P&L A/c EAT (A) 10,61,197 EAT = 10,61,197

24 For Calculations.

INTER CA NOVEMBER 2018

INTER CA NOVEMBER 2018 Sub: FINANCIAL MANAGEMENT Topics Estimation of Working Capital, Receivables Management, Accounting Ratio, Leverages, Capital Structure. Test Code N16 Branch: Multiple Date: (50 Marks)