Comparative Income:

Comparative income refers to the comparison of income between different periods or between different individuals or entities. It helps in analyzing the growth or decline in income and identifying the factors contributing to it.

Calculation of Current Liabilities and Value of Inventory:

(a) Current Liabilities:

Current Ratio = Current Assets/Current Liabilities
3.5 = Current Assets/Current Liabilities
Current Liabilities = Current Assets/3.5

Working Capital = Current Assets - Current Liabilities
Rs. 1,00,000 = Current Assets - Current Assets/3.5
Current Assets = Rs. 1,50,000

Current Liabilities = Current Assets/3.5 = Rs. 1,50,000/3.5 = Rs. 42,857.14

Therefore, the value of Current Liabilities is Rs. 42,857.14.

(b) Value of Inventory:

Liquid Ratio = Liquid Assets/Liquid Liabilities
2.5 = (Current Assets - Inventory)/Current Liabilities
Current Assets - Inventory = 2.5 x Current Liabilities
Rs. 1,50,000 - Inventory = 2.5 x Rs. 42,857.14
Inventory = Rs. 63,571.43

Therefore, the value of Inventory is Rs. 63,571.43.

List any four ratios and explain them:

1. Current Ratio:
Current Ratio is a liquidity ratio that measures the ability of a company to pay its current liabilities using its current assets. It is calculated by dividing current assets by current liabilities. A higher current ratio indicates a better ability to meet short-term obligations.

2. Liquid Ratio:
Liquid Ratio is a more stringent liquidity ratio that measures the ability of a company to pay its current liabilities using its liquid assets. It is calculated by dividing liquid assets by current liabilities. Liquid assets are those assets that can be easily converted into cash. A higher liquid ratio indicates a better ability to meet short-term obligations.

3. Working Capital:
Working Capital is the difference between current assets and current liabilities. It indicates the amount of funds that are available to a company for its day-to-day operations. A positive working capital indicates that the company has enough funds to meet its short-term obligations, while a negative working capital indicates that the company may face difficulties in meeting its short-term obligations.

4. Debt-Equity Ratio:
Debt-Equity Ratio is a leverage ratio that measures the proportion of debt and equity in a company's capital structure. It is calculated by dividing total debt by total equity. A higher debt-equity ratio indicates that the company is more reliant on debt to finance its operations, which may increase its financial risk.