From the following particulars extracted from the books of Ashok & Co. Ltd., compute the followingratios and comment:(a) Current ratio, (b) Acid Test Ratio, (c) Stock-Turnover Ratio, (d) Debtors Turnover Ratio, (e) Creditors'Turnover Ratio, and Average Debt Collection period.41-1-2002 31-12-2002Rs. Rs.Bills Receivable 30,000 60,000Bills Payable 60,000 30,000Sundry Debtors 1,20,000 1,50,000Sundry Creditors 75,000 1,05,000Stock-in-trade 96,000 1,44,000Additional information:(a) On 31-12-2002, there were assets: Building Rs. 2,00,000, Cash Rs. 1,20,000 and Cash at Bank Rs.96,000.(b) Cash purchases Rs. 1,38,000 and Purchases Returns were Rs. 18,000.(c) Cash sales Rs. 1,50,000 and Sales returns were Rs. 6,000.Rate of gross profit 25% on sales and actual gross profit was Rs. 1,50,000

Sure, let's calculate the ratios one by one:

(a) Current Ratio: It is calculated as Current Assets / Current Liabilities. Current Assets include Bills Receivable, Sundry Debtors, Stock-in-trade, Cash, and Cash at Bank. Current Liabilities include Bills Payable and Sundry Creditors.

For 2002, Current Assets = 60,000 (Bills Receivable) + 1,50,000 (Sundry Debtors) + 1,44,000 (Stock-in-trade) + 1,20,000 (Cash) + 96,000 (Cash at Bank) = Rs. 5,70,000 Current Liabilities = 30,000 (Bills Payable) + 1,05,000 (Sundry Creditors) = Rs. 1,35,000

So, Current Ratio = 5,70,000 / 1,35,000 = 4.22

(b) Acid Test Ratio: It is calculated as (Current Assets - Inventory) / Current Liabilities.

Acid Test Ratio = (5,70,000 - 1,44,000) / 1,35,000 = 3.15

(c) Stock-Turnover Ratio: It is calculated as Cost of Goods Sold / Average Inventory. But we don't have enough information to calculate this ratio.

(d) Debtors Turnover Ratio: It is calculated as Net Credit Sales / Average Accounts Receivable. But we don't have enough information to calculate this ratio.

(e) Creditors' Turnover Ratio: It is calculated as Net Credit Purchases / Average Accounts Payable. But we don't have enough information to calculate this ratio.

Average Debt Collection period: It is calculated as 365 / Debtors Turnover Ratio. But since we couldn't calculate the Debtors Turnover Ratio, we can't calculate this either.

In conclusion, the company has a strong liquidity position as indicated by the high current and acid test ratios. However, we need more information to assess the efficiency of inventory and receivables management.