audit pdf.pdf - 1 ASSIGNMENT AUDITING ASSURANCE AND COMPLIANCE SUBMITTED TO Dr Khokan Bepari SUBMITTED BY Name:Sujan Thapa Student ID:EMV8688 2 Q1

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1 ASSIGNMENT AUDITING, ASSURANCE AND COMPLIANCE SUBMITTED TO; Dr. Khokan Bepari SUBMITTED BY; Name:Sujan Thapa Student ID:EMV8688
2 Q1 Calculation of Financial ratio analysis of DIPL for the years 2013, 2014, 2015 The financial ratio analysis is a tool that measures whether an organisation is performing superi- or to its earlier years and if not it helps to find the solutions for the present circumstance. Al- though because of development of an organisation the ratio may transform, they don't change the organisation’s capacity to remain inside the limit points of their money related matter. Ratio Formula 2013 2014 2015 Current ra- tio Current As- sets / Current Lia- bilities 5385938/3780000 =1.42 7509150/5120250 =1.47 9600929/6397500 =1.50 Debt ratio Total Liabili- ties Total Assets 3780000/1293000 0 =0.29 5120250/15903900 =0.32 6397500/2614799 1 =0.24
3 Quick Ratio Cash + Ac- counts Re- ceivable Current Lia- bilities 647250+2482500/ 3780000 =0.82 517788+4320000/5 120250 =0.94 347120+5073309/ 6397500 =0.85 Debt Equity ratio Total Debt Total Equity 3780000/9150000 =0.413 5120250/10783650 =0.47 6397500/1225049 1 =0.52 Gross profit Ratio Gross Profit Net Sales 6004500/3421200 0 =0.1755 or 17.55% 6079500/37699500 =0.1613 or 16.13% 6604500/4345950 0 =0.1520 or 15.20% Net profit Ratio Net Income * Net Sales 3454650 /3421200 0 =10.10% 3357037/37699500 =8.90% 3867337/4345950 0 =8.89% Time Inter- est Ratio EBIT Interest Ex- pense 3454650/84379 =40.94 3357037/83663 =40.12 3867337/808038 =4.79
4 Ratio for- mula 2013 2014 2015 ROE Net Income * Equity 2359190/9150000 =0.2578 or 25.78% 2291362/ 10783650 =0.2125 or 21.25% 2972183/ 12250491 =0.2426 or 24.26% ROA Net Income * (Beginning + Ending Total Assets) / 2 2359190/1293000 0 =0.1825 or 18.25% 2291362/15903900 = =0.1441 or 14.41% 2972183/26147991 = =0.1137 or 11.37% Days in recievable ratio Gross Re- ceivables Annual Net Sales / 365 2362500/6004500/ 365= =143.6 days 2797238/6079500/3 65= 167.94 days 4180500/6604500/3 65= 231 days Inventory turnover ratio Cost of Goods Sold Average In- ventory 28207500/225618 8 =12.50 31620000/2671362 = =11.88 36855000/4180500 =8.816 Recievable turnover ratio Net Sales Average Gross Re- ceivables 6004500/2482500 =2.41 6079500/4320000= =1.40 6604500/5073309 =1.30
5 Analysis of Ratios Current ratio: This ratio is calculated using company's current assets and current liabilities . In 2013, it remained at 1.42, in 2014, hopped to 1.47 and in 2015, it went to 1.5. this is a decent sign although a minor increment. Debt ratio- i t is the ratio of aggregate liabilities over aggregate assets. In 2013, it remained at 0.29, in 2014 it expanded to 0.32 and in 2015, it dropped to 0.24. this implies the administration is doing great in dealing with its debt because of the drop.

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• Balance Sheet, Financial Ratio, Generally Accepted Accounting Principles, Dipl

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