1) Liquidity Measurement Ratios
- Current Ratio
- Quick Ratio
- Cash Ratio
- Cash Conversion Cycle

2) Profitability Indicator Ratios
- Profit Margin Analysis
- Effective Tax Rate
- Return On Assets
- Return On Equity
- Return On Capital Employed

3) Debt Ratios
- Overview Of Debt
- Debt Ratio
- Debt-Equity Ratio
- Capitalization Ratio
- Interest Coverage Ratio
- Cash Flow To Debt Ratio

4) Operating Performance Ratios
- Fixed-Asset Turnover
- Sales/Revenue Per Employee
- Operating Cycle

5) Cash Flow Indicator Ratios
- Operating Cash Flow/Sales Ratio
- Free Cash Flow/Operating Cash Ratio
- Cash Flow Coverage Ratio
- Dividend Payout Ratio

6) Investment Valuation Ratios
- Per Share Data
- Price/Book Value Ratio
- Price/Cash Flow Ratio
- Price/Earnings Ratio
- Price/Earnings To Growth Ratio
- Price/Sales Ratio
- Dividend Yield
- Enterprise Value Multiple

FIN623 - Taxation Management GDB # 5

Q1 A person buys and sells a number of vehicles in a tax year and makes a significant amount of profit in the process. Will such profit be taxable as capital gain?
Q2 A person somehow gets hold of an extraordinary rare bird, keeps it as a pet for two years and then sells it off. Will related profit be taxable as capital gain?


Ans........

Q1....It is the absolutly the capital gain becasue Capital assest has been defined as property of any kind,connected to business or not, but in this case it is the part of its business becase he is actually doing a business of car to buy and sell.

Q.2...

This is also the Capital gain but the key poit in this question is its not connected with his business ,but the bird antiquie according to sec 38 sub 5 ..and the sell of this antique piece is a capital gain.

Note..the 2nd answer could be wrong bz i thing the bird is not a antique bz antique is use for non living items this section includes..following its which is charge as capial gain...

1.A painting,sculpture,drawing or the other work of art...
2.Jewellery
3.A rare manuscript,folio or book.
4.A postage or first day cover
5.A coi or medallion
6.An antique

So now you must have to look at these items, is the bird is part or any items or not...


thankxx
regards
muhammad azeem
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