Advertisements
Advertisements
प्रश्न
Cash Revenue from Operations (Cash Sales) ₹ 2,00,000, Cost of Revenue from Operations or Cost of Goods Solds ₹ 3,50,000; Gross Profit ₹ 1,50,000; Trade Receivables Turnover Ratio 3 Times. Calculate Opening and Closing Trade Receivables in each of the following alternative cases:
Case 1: If Closing Trade Receivables were ₹ 1,00,000 in excess of Opening Trade Receivalbes.
Case 2: If trade Receivables at the end were 3 times than in the beginning.
Case 3: If trade Receivables at the end were 3 times more than that of in the beginning.
उत्तर
Total sales = Cost of goods sold + Gross profit
= 350000 + 150000
= ₹ 500000
Credit sales = Total sales − Cash sales
= 500000 − 200000
= ₹ 300000
Trade Receivables Turnover Ratio = `"Credit sale"/"Average Trade Receivables"`
`3 = 300000/"Average Trade Receivables"`
Average Trade Receivables = `300000/3`
= 100000
Case 1:
Let opening trade receivable be x.
∴ Closing trade receivable = x + 100000
Average trade receivable = `("opening trade receivable" + "Closing trade receivable")/2`
∴ `100000 = (x + x + 100000)/2`
∴ `100000 xx 2 = 2x + 100000`
∴ `200000 = 2x + 100000`
∴ `200000 - 100000 = 2x`
∴ `2x = 100000`
∴ `x = 100000/2`
∴ x = 50000
Opening trade receivable = ₹ 50,000
Closing trade receivable = x + 100000
= 50000 + 100000
= ₹ 1,50,000
Case 2:
Let opening trade receivable be x.
Closing trade receivable be 3x
`100000 = (x + 3x)/2`
∴ 100000 × 2 = x + 3x
∴ 200000 = 4x
∴ `200000/4 = x`
∴ x = 50000
Opening trade receivable = ₹ 50,000
Closing trade receivable = 3x
∴ = 3 × 50000
= ₹ 1,50,000
Case 3:
Let opening trade receivable be x.
Closing trade receivable be x + 3x
`100000 = (x + 4x)/2`
∴ 100000 × 2 = x + 4x
∴ 200000 = 5x
∴ `200000/5 = x`
∴ x = 40000
Opening trade receivable = ₹ 40,000
Closing trade receivable = 4x
= 4 × 40000
= ₹ 1,60,000
APPEARS IN
संबंधित प्रश्न
Long Answer Question
How would you study the solvency position of the firm?
The current ratio provides a better measure of overall liquidity only when a firm’s inventory cannot easily be converted into cash. If inventory is liquid, the quick ratio is a preferred measure of overall liquidity. Explain.
Calculate the following ratio on the basis of following information:
(i) Gross Profit Ratio (ii) Current Ratio (iii) Acid Test Ratio (iv) Inventory Turnover Ratio (v) Fixed Assets Turnover Ratio
| Rs. | |
| Gross Profit | 50,000 |
| Revenue from Operations | 100,000 |
| Inventory | 15,000 |
| Trade Receivables | 27,500 |
| Cash and Cash Equivalents | 17,500 |
| Current Liabilities | 40,000 |
| Land & Building | 50,000 |
| Plant & Machinery | 30,000 |
| Furniture | 20,000 |
State giving reason, whether the Current Ratio will improve or decline or will have no effect in each of the following transactions if Current Ratio is 2:1:
(a) Cash paid to Trade Payables.
(b) Bills Payable discharged.
(c) Bills Receivable endorsed to a creditor.
(d) Payment of final Dividend already declared.
(e) Purchase of Stock-in-Trade on credit.
(f) Bills Receivable endorsed to a Creditor dishonoured.
(g) Purchases of Stock-in-Trade for cash.
(h) Sale of Fixed Assets (Book Value of ₹50,000) for ₹45,000.
(i) Sale of FIxed Assets (Book Value of ₹50,000) for ₹60,000.
Assuming That the Debt to Equity Ratio is 2 : 1, state giving reasons, which of the following transactions would (i) increase; (ii) Decrease; (iii) Not alter Debt to Equity Ratio:
Calculate Total Assets to Debt Ratio from the following information:
Long-term Debts ₹ 4,00,000; total Assets ₹ 7,70,000.
Total Debt ₹ 60,00,000; Shareholders' Funds ₹ 10,00,000; Reserves and Surplus ₹ 2,50,000; Current Assets ₹ 25,00,000; Working Capital ₹ 5,00,000. Calculate Total Assets to Debt Ratio.
Calculate Inventory Turnover Ratio from the following information:
Opening Inventory is ₹50,000; Purchases ₹3,90,000; Revenue from Operations, i.e., Net Sales ₹6,00,000; Gross Profit Ratio 30%.
From the following information, calculate Inventory Turnover Ratio:
| ₹ | |
| Revenue from Operations | 16,00,000 |
| Average Inventory | 2,20,000 |
| Gross Loss Ratio 5% |
₹2,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold), during the year. If Inventory Turnover Ratio is 8 times, calculate inventories at the end of the year. Inventories at the end is 1.5 times that of in the beginning.
A company earns Gross Profit of 25% on cost. For the year ended 31st March, 2017 its Gross Profit was ₹ 5,00,000; Equity Share Capital of the company was ₹ 10,00,000; Reserves and Surplus ₹ 2,00,000; Long-term Loan ₹ 3,00,000 and Non-current Assets were ₹ 10,00,000.
Compute the 'Working Capital Turnover Ratio' of the company.
Compute Gross Profit Ratio from the following information:
Revenue from Operations, i.e., Net Sales = ₹4,00,000; Gross Profit 25% on Cost.
From the following information, calculate Gross Profit Ratio:
| ₹ | ₹ | |||
| Credit Sales | 5,00,000 | Decrease in Inventory | 10,000 | |
| Purchases | 3,00,000 | Returns Outward | 10,000 | |
| Carriage Inwards | 10,000 | Wages | 50,000 | |
| Rate of Credit Sale to Cash Sale | 4:1 |
Operating Cost ₹ 3,40,000; Gross Profit Ratio 20%; Operating Expenses ₹ 20,000. Calculate Operating Profit Ratio.
Calculate following ratios on the basis of the following information:
(i) Gross Profit Ratio;
(ii) Current Ratio;
(iii) Acid Test Ratio; and
(iv) Inventory Turnover Ratio.
| ₹ | ₹ | |||
| Gross Profit | 50,000 | Revenue from Operations | 1,00,000 | |
| Inventory | 15,000 | Trade Receivables | 27,500 | |
| Cash and Cash Equivalents | 17,500 | Current Liabilities | 40,000 |
Choose the appropriate alternative from the given options:
Bishan and Sudha were partners in firm sharing profits and losses in the ratio of 5 : 3. Alena was admitted as a new partner. It was decided that the new profit sharing ratio of Bishan, Sudha, and Alena will be 10: 6: 5. The sacrificing ratio of Bishan and Sudha will be:
Collection of debtors:
Liquidity ratios includes which two types of ratios?
Pick the odd one out.
