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Please check my Balance sheet and let me know if I did any mistake and explain me Part B, C, and D.

A. Please let me know if I did any mistake in Balance Sheet immediately after it had acquired the Partnership
And redeemed the 10% debenture.

B.Please explain me part b and c, d.I am preparing for final exam


Solution Preview

There does not seem to be any major mistake in your balance sheet.

If you divide the Net Profit by Turnover that is 44,646 by 334,410 you get the ratio of 0.1335067. This gives us the proportion between the turnover and net profit. Then if we take the investment in Porridge to be 2089 from your balance sheet, and if we multiply that figure by 0.25 we get 522.25, which is the return on investment the problem, is asking for. If we divide 522.25 by ...