The finance manager of ABC Ltd., a company based in Bangalore has gone on vacation to an island with his family. The island has very poor connectivity and hence he is unable to make or receive calls. The CEO of the company sent him a SMS to provide certain information related to the financial statement as he was unable to connect due to network problems and CEO has a meeting with the chairman next day.
The finance manager has no documents with him and he was also not able to take the help of internet to send the desired information due to lack of internet facility on the island. On the basis of his memory, he was able to send the following information to the CEO through SMS, which was delivered after 2 hours.
a) Current Debt to Total Debt Ratio : 0.40
b) Total Debt to owner’s equity : 0.60
c) Fixed Assets to owner’s equity : 0.60
d) Total Assets turnover : 2 Times
e) Inventory turnover : 8 Times
f) Owner’s equity : ₹1,00,000
The CEO is puzzled to get the SMS, as he was unable to find the required information. You are required to help the CEO in finding relevant information from the SMS as indicated in the following questions:
Compute the value of inventory from the data given in case.