Education University Multan Campus Q1: Good year tire and rubber and B.

R are one of the worlds largest publicly owned manufactures of the products. Shown below are data from the companies recent annual reports Good Year Total Current assests Total current liabilities Total Quick assests Average total assets Average stockholders equity Operating income Net Income A: Compute the following for each company 1. 2. 3. 4. 5. Current ration Quick ratio Working capital Return on average total assets Returen on average total stockholders equity 3841600 2736300 1883300 9789600 3281700 1135400 611000

Q2: Swan limited borrowed a loan from bank @12% Per annum amounting to Rs 1000000 for the construction of power generation facilities of the company . The loan was received on January 01 and utilized Rs. 300000 on qualifying asset. On January 01 the company deposited the remaining amount in a bank yielding interest @ 6% whole of the amount is withdrawn and paid to contractor on March 01. The company returned the loan to bank after 9 month on October01. Required: calculate the amount of borrowing cost eligible for capitalization Q3: Determi9ne the cost of sales of a firm with the financial data given below Current Ratio Quick Ratio Current liabilities Inventory turnover 2.5 2.0 $400,000 3 times

Q4: Starkey company sales current assets, and current liabilities have been reported as follows over the last five years Year5 Sales Current Assets Cash Accounts Receivable Inventory Total current Assets Current Liablities 64 560 896 1520 390 72 496 880 1448 318 84 432 816 1332 324 88 416 864 14368 330 80 400 800 1280 300 5625 year 4 5400 year3 4950 year2 4725 year1 4500

Required: Express all of the assets liabilities and sales data in horizontal percentages Q5: From the following particulars from the financial statement of XYZ Ltd. Compute Current Ratio Liquid Ratio Inventory turnover ratio Account Receivable Turnover ration Account Payable Turnover Ratio Rs 94000 106000 504000 4000 64000 8000 360000 Particulars Accounts Receivables Cash Bank Bills Receivable Provision for Taxation Bills Payable Marketable Securities Rs 84000 20000 16000 30000 30000 58000 16000

Particulars Opening Inventory Closing Inventory Sales Less return Allowances for uncollectible Accounts payable Loose tools Purchases

Q6: At year end 2000, Hashmi Companys balance sheet shows total assets of $12 million total liabilities Including preferred stock of $9 Million and 200,000 shares of common stock outstanding Moreover, the company can obtain $10.50 million if it sold it assets today. With help above information calculate 1. Boook value per share 2. Liquidation value per share

Q7: Income Statement Absolute Dollar Revenue from sale -c.G.S Gross profit Oprating exp. Selling exp General exp T. Oprating exp Oprating income before tax -Tax related Net income 14000 16000 30000 5000 1500 3500 11400 15200 26600 7600 2280 5320 1997 100000 65000 35000 1996 95000 60800 34200

Required: Express all of above entries in vertical percentage Q:8 Imran manufacturing is a mature firm in the machine tool component industry . The firm most recent common stock dividend was $2.40 Per share. Due to its maturity as well as stable sales and earnings, the firms management feels threat dividends will remain at the current level for the foreseeable future If the required return is 12% what will be the value of Imrans common stock If the firms risk as perceived by market participants suddenly increases causing the required return to rise to 20% what will be common stock value