Advertisements
Advertisements
प्रश्न
Calculate Trade Receivables Turnover Ratio in each of the following alternative cases:
Case 1: Net Credit Sales ₹4,00,000; Average Trade Receivables ₹1,00,000.
Case 2: Revenue from Operations (Net Sales) ₹30,00,000; Cash Revenue from Operations, i.e., Cash Sales ₹6,00,000; Opening Trade Receivables ₹2,00,000; Closing Trade Receivables ₹6,00,000.
Case 3: Cost of Revenue from Operations or Cost of Goods Sold ₹3,00,000; Gross Profit on Cost 25%; Cash Sales 20% of Total Sales; Opening Trade Receivables ₹50,000; Closing Trade Receivables ₹1,00,000.
Case 4: Cost of Revenue from Operations or Cost of Goods Sold ₹4,50,000; Gross Profit on Sales 20%; Cash Sales 25% of Net Credit Sales, Opening Trade Receivables ₹90,000; Closing Trade Receivables ₹60,000.
उत्तर
Case 1
Trade Receivable Turnover Ratio = `"Net Credit Sales"/"Average Trade Receivables"`
Trade Receivable Turnover Ratio = `400000/100000` = 4 times
Case 2
Net Credit Sales = Total Sales −Cash Sales
= 30,00,000 − 6,00,000 = 24,00,000
Average Trade Receivable = `("Opening Trade Receivable + Closing Trade Receivable ")/2`
Average Trade Receivable = `(200000 + 600000)/2 = 400000`
Trade Receivable Turnover Ratio = `"Net Credit Sales"/"Average Trade Receivables"`
Trade Receivable Turnover Ratio = `2400000/400000` = 6 times
Case 3
Cost of Goods Sold = 3,00,000
Gross Profit = 25% on Cost
∴ Gross Profit =`25/100 xx 300000 = 75000`
Total Sales = Cost of Goods Sold + Gross Profit
= 3,00,000 + 75,000 = 3,75,000
Cash Sales = 20% of Total Sales
∴ Cash Sales = `375000 xx 20/100 = 75000`
Credit Sales = Total Sales − Cash Sales
= 3,75,000 − 75,000 = 3,00,000
Average Trade Receivable = `("Opening Trade Receivable + Closing Trade Receivable ")/2`
Average Trade Receivable = `(50000 + 100000)/2 = 75000`
Trade Receivable Turnover Ratio = `"Net Credit Sales"/"Average Trade Receivables"`
Trade Receivable Turnover Ratio = `300000/75000` = 4 times
Case 4
Let Sales be = x
Gross Profit = `x xx 20/100 = (20x)/100`
Sales = Cost of Goods Sold + Gross Profit
or, `x = 450000 + (20x)/100`
or, `x - 20/100 = 450000`
or,`x = (450000 xx 100)/80` = 562500
Sales = x = Rs 562500
Let Credit Sales be = a
Cash Sales = `a xx 25/100 = (25a)/100`
Sales = Cash Sales + Credit sales
or, `562500 = (25a)/100 + a`
or, `562500 = (125a)/100`
or,`a = (562500 xx 100)/125 = 450000`
Credit Sales = a = 450000
Average Trade Receivable = `("Opening Trade Receivable + Closing Trade Receivable ")/2`
Average Trade Receivable = `(90000 + 60000)/2 = 75000`
Trade Receivable Turnover Ratio = `"Net Credit Sales"/"Average Trade Receivables"`
Trade Receivable Turnover Ratio = `450000/75000` = 6 times
APPEARS IN
संबंधित प्रश्न
Calculate Current Ratio if:
Inventory is Rs 6,00,000; Liquid Assets Rs 24,00,000; Quick Ratio 2:1.
Calculate Inventory Turnover Ratio if:
Inventory in the beginning is Rs. 76,250, Inventory at the end is 98,500, Gross Revenue from Operations is Rs. 5,20,000, Sales Return is Rs. 20,000, Purchases is Rs. 3,22,250.
Ratio of Current Assets (₹3,00,000) to Current Liabilities (₹2,00,000) is 1.5:1. The accountant of the firm is interested in maintaing a Current Ratio of 2:1 by paying off a part of the Current Liabilities. Compute amount of the Current Liabilities that should be paid so that the Current Ratio at the level of 2:1 may be maintained.
Ratio of Current Assets (₹8,75,000) to Current Liabilities (₹3,50,000) is 2.5:1 The firm wants to maintain Current Ratio of 2:1 by purchasing goods on credit. Compute amount of goods that should be purchased on credit.
When Debt to Equity Ratio is 2, state giving reason, whether this ratio will increase or decrease or will have no change in each of the following cases:
(i) Sale of Land (Book value ₹4,00,000) for ₹5,00,000; (ii) Issue of Equity Shares for the purchase of Plant and Machinery worth ₹10,00,000; (iii) Issue of Preference Shares for redemption of 13% Debentures, worth ₹10,00,000.
Total Assets ₹12,50,000; Total Debts ₹10,00,000; Current Liabilities ₹5,00,000.
Calculate Debt to Equity Ratio.
Inventory Turnover Ratio 5 times; Cost of Revenue from Operations (Cost of Goods Sold) ₹ 18,90,000. Calculate Opening Inventory and Closing Inventory if Inventory at the end is 2.5 times more than that in the beginning.
From the following information, calculate Opening and Closing Trade Receivables, if Trade Receivables Turnover Ratio is 3 Times:
(i) Cash Revenue from Operations is 1/3rd of Credit Revenue from Operations.
(ii) Cost of Revenue from Operations is ₹3,00,000.
(iii) Gross Profit is 25% of the Revenue from Operations.
(iv) Trade Receivables at the end are 3 Times more than that of in the beginning.
Calculate Trade Payables Turnover Ratio for the year 2018-19 in each of the alternative cases:
Case 1 : Closing Trade Payables ₹ 45,000; Net Purchases ₹ 3,60,000; Purchases Return ₹ 60,000; Cash Purchases ₹ 90,000.
Case 2 : Opening Trade Payables ₹ 15,000; Closing Trade Payables ₹ 45,000; Net Purchases ₹ 3,60,000.
Case 3 : Closing Trade Payables ₹ 45,000; Net Purchases ₹ 3,60,000.
Case 4 : Closing Trade Payables (including ₹ 25,000 due to a supplier of machinery) ₹ 55,000; Net Credit Purchases ₹ 3,60,000.
From the following, calculate Gross Profit Ratio:
Gross Profit:₹50,000; Revenue from Operations ₹5,00,000; Sales Return: ₹50,000.
Gross Profit Ratio of a company is 25%. State giving reason, which of the following transactions will (a) increase or (b) decrease or (c) not alter the Gross Profit Ratio.
(i) Purchases of Stock-in-Trade ₹50,000.
(ii) Purchases Return ₹15,000.
(iii) Cash Sale of Stock-in-Trade ₹40,000.
(iv) Stock-in-Trade costing ₹20,000 withdrawn for personal use.
(v) Stock-in-Trade costing ₹15,000 distributed as free sample.
Calculate Return on Investment (ROI) from the following details: Net Profit after Tax ₹ 6,50,000; Rate of Income Tax 50%; 10% Debentures of ₹ 100 each ₹ 10,00,000; Fixed Assets at cost ₹ 22,50,000; Accumulated Depreciation on Fixed Assets up to date ₹ 2,50,000; Current Assets ₹ 12,00,000; Current Liabilities ₹ 4,00,000.
Higher the ratio, the more favourable it is, doesn't stand true for:
Current ratio is also known as ____________.
Which items are included in current assets to get the current ratio?
Which of the following are included in traditional classification of ratios?
- Liquidity Ratios
- Statement of Profit and loss Ratios
- Balance Sheet Ratios
- Profitability Ratios
- Composite Ratios
- Solvency Ratios
The following groups of ratios primarily measure risk.
Calculate 'Liquid Ratio' from the following information:
Current Liabilities Rs. 50,000, Current Assets Rs. 80,000, Stock Rs.25,000, Prepaid Expenses Rs.5,000
Calculate the Creditor's Turnover Ratio from the following figures.
Credit purchases during 2005 = Rs. 12,00,000
Creditors + Bills Payables) on 1.1.2005 = Rs. 4,00,000
Creditors + Bills Payables) on 31.12.2005 =Rs. 2,00,000
Read the following information and answer the given question:
X Ltd. made a profit of 5,00,000 after consideration of the following items:
| ₹ | ||
| (i) | Goodwill written off | 5,000 |
| (ii) | Depreciation on Fixed Tangible Assets | 50,000 |
| (iii) | Loss on Sale of Fixed Tangible Assets (Machinery) |
20,000 |
| (iv) | Provision for Doubtful Debts | 10,000 |
| (v) | Gain on Sale of Fixed Tangible Assets (Land) | 7,500 |
Additional information:
| Particulars | 31.3.2019 (₹) |
31.3.2018 (₹) |
| Trade Receivables | 78,800 | 52,000 |
| Prepaid Expenses | 3,000 | 2,000 |
| Trade Payables | 51,000 | 30,000 |
| Expenses Payable | 20,000 | 34,000 |
What amount of trade Receivables will be subtracted from the Cash flow Statement to get Cash flow from operations?
