Application of Funds

This text provides a summary of the application of funds for a company. It includes information on fixed assets, working capital, current assets, current liabilities, working capital, capital employed, long term debt equity, and proprietary ratio.

Questions

• What are the fixed assets of the company?
• What are the current assets of the company?
• What are the current liabilities of the company?
• What is the working capital of the company?
• What is the capital employed of the company?
• What is the long term debt equity of the company?
• What is the proprietary ratio of the company?

Answers

• The fixed assets of the company are land and building, plant and machinery, and furniture and fixtures.
• The current assets of the company are debtors, cash in hand, stock, and prepaid expenses.
• The current liabilities of the company are creditors, outstanding expenses, provision for taxation, and proposed dividend.
• The working capital of the company is 1,40,000.
• The capital employed of the company is 3,30,000.
• The long term debt equity of the company is 0.14:1.
• The proprietary ratio of the company is 67.44%.