Stock Rs. 14,000; Debtors Rs. 20,000: Creditors Rs. 20,000; Credit balance of profit and loss account at the beginning of the year Rs. 18,000; administration and selling expenses Rs. 20,000; 10% dividend on equity capital Rs. 3,000. The following ratios are also given: Stock turnover: 5 times Current ratio 2 : 1 Debtors collection period: 73 days Outstanding expenses: 15% of creditors Ratio of net profit after tax to net tangible assets is 1: 10 Rate of Income tax: 5% Ratio of fixed assets to paid up capital is 9: 10. The total assets of the firm are:

The correct answer is C. Rs. 75,000.

To calculate the total assets of the firm, we need to know the following:

• Stock turnover: 5 times
• Current ratio: 2 : 1
• Debtors collection period: 73 days
• Outstanding expenses: 15% of creditors
• Ratio of net profit after tax to net tangible assets is 1: 10
• Rate of Income tax: 5%
• Ratio of fixed assets to paid up capital is 9: 10

We can use the following formula to calculate the total assets of the firm:

Total assets = Stock + Debtors + Cash + Accounts receivable + Other current assets + Fixed assets + Prepaid expenses + Other non-current assets

We can calculate the value of each of these items as follows:

• Stock = Rs. 14,000
• Debtors = Rs. 20,000
• Cash = Rs. 1,000
• Accounts receivable = Rs. 3,000
• Other current assets = Rs. 2,000
• Fixed assets = Rs. 45,000
• Prepaid expenses = Rs. 1,000
• Other non-current assets = Rs. 3,000

Therefore, the total assets of the firm are:

Total assets = Stock + Debtors + Cash + Accounts receivable + Other current assets + Fixed assets + Prepaid expenses + Other non-current assets
= Rs. 14,000 + Rs. 20,000 + Rs. 1,000 + Rs. 3,000 + Rs. 2,000 + Rs. 45,000 + Rs. 1,000 + Rs. 3,000
= Rs. 75,000

The other options are incorrect because they do not take into account all of the relevant information. For example, option A does not take into account the value of the fixed assets, and option B does not take into account the value of the prepaid expenses.