FIN311 Financial Management

Financial ManagementTU Board 2025

Consider the following balance sheet and financial statements for Hamro Hotel Limited. Balance Sheet for the Year Ended December 31, 2024 AssetsLiabilities and equityCashRs 240,000Accounts payableRs…

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Consider the following balance sheet and financial statements for Hamro Hotel Limited. Balance Sheet for the Year Ended December 31, 2024 AssetsLiabilities and equityCashRs 240,000Accounts payableRs 380,000Accounts receivable320,000Notes payable420,000Inventory1,040,000Other current liabilities50,000Net plant and equipment800,000Long term debt800,000Common equity750,000Total assetsRs 2,400,000Total liabilities and equityRs 2,400,000 Income statement for the Year Ended December 31, 2024 SalesRs 3,000,000Less: Cost of goods sold1,800,000Gross profitRs 1,200,000Less: Selling, general, and administrative expenses860,000Earnings before interest and taxesRs 340,000Less: InterestRs 117,800Earnings before taxesRs 222,200Less: Tax (40%)88,880Earnings after taxesRs 133,320 a. Calculate current ratio and quick ratio. b. Calculate total assets turnover and inventory turnover ratio. c. Calculate the debt ratio and times interest earned ratio. d. Calculate net profit margin and return on equity.

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