हिंदी

Debt to Capital Employed ratio is 0.3:1. State whether the following transaction and give a reasons. Conversion of Debentures into Equity Shares of ₹ 2,00,000. - Accountancy

Advertisements
Advertisements

प्रश्न

Debt to Capital Employed ratio is 0.3:1. State whether the following transaction, will improve, decline or will have no change on the Debt to Capital Employed Ratio. Also give a reason for the same.

Conversion of Debentures into Equity Shares of ₹ 2,00,000.

विकल्प

  • Ratio will improve.

  • Ratio will decline.

  • Ratio has no change.

MCQ
एक पंक्ति में उत्तर

उत्तर

Ratio will decline.

Reason – Debt will decrease but Capital Employed will remain the same.

shaalaa.com
Types of Ratios
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
2022-2023 (March) Analysis of Financial Statements

संबंधित प्रश्न

Current Ratio is 3.5 : 1. Working Capital is Rs 90,000. Calculate the amount of Current Assets and Current Liabilities.


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.


You are able to collect the following information about a company for two years:

 

 

 

2015-16

 

2016-17

Trade receivables on Apr. 01

 Rs.

4,00,000

 Rs

5,00,000

Trade receivables on Mar. 31

 

 

Rs

5,60,000

Stock in trade on Mar. 31

Rs.

6,00,000

Rs

9,00,000

Revenue from operations (at gross profit of 25%)

Rs.

3,00,000

Rs

 24,00,000

Calculate Inventory Turnover Ratio and Trade Receivables Turnover Ratio.


Working Capital  ₹  3,60,000; Total :Debts  ₹ 7,80,000; Long-term Debts ₹ 6,00,000; Inventories  ₹ 1,80,000. Calcltate Liquid Ratio.


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:


On the basis of the following information, calculate Total Assets to Debt Ratio:

Particulars

Particulars

Capital Employed

50,00,000

Share Capital

35,00,000

Current Liabilities

20,00,000

10% Debentures

10,00,000
Land and Building 60,00,000 General Reserve 3,00,000
Trade Receivable 4,00,000 Surplus, i.e., Balance in Statement of Profit and Loss 2,00,000
Cash and Cash Equivalents 5,00,000    

Investment (Trade)

1,00,000

 

 

Total Debt ₹12,00,000; Current Liabilities ₹4,00,000; Capital Employed ₹`12,00,000. Calculate Total Assets to Debt Ratio.


Calculate Inventory Turnover Ratio from the following information:

Opening Inventory ₹ 40,000; Purchases ₹ 3,20,000; and Closing Inventory ₹ 1,20,000.
State, giving reason, which of the following transactions would (i) increase, (ii) decrease, (iii) neither increase nor decrease the Inventory Turnover Ratio:
(a) Sale of goods for ₹ 40,000 (Cost ₹ 32,000).
(b) increase in the value of Closing Inventory by ₹ 40,000.
(c) Goods purchased for ₹ 80,000.
(d) Purchases Return ₹ 20,000.
(e) goods costing ₹ 10,000 withdrawn for personal use.
(f) Goods costing ₹ 20,000 distributed as free samples.


Calculate Working Capital Turnover Ratio from the following information: 
Revenue from Operations ₹ 30,00,000; Current Assets ₹ 12,50,000; Total Assets ₹ 20,00,000; Non-current Liabilities ₹ 10,00,000, Shareholders' Funds ₹ 5,00,000.


Calculate Cost of Revenue from Operations from the following information:
Revenue from Operations ₹ 12,00,000; Operating Ratio 75%; Operating Expenses ₹ 1,00,000.


Calculate Operating Ratio from the following information:
Operating Cost ₹ 6,80,000; Gross Profit 25%; Operating Expenses ₹ 80,000. 


From the following information, calculate any two of the following ratios:

(i) Current Ratio; 
(ii) Debt to Equity Ratio; and
(iii) Operating Ratio.
Revenue from Operations (Net Sales) ₹ 1,00,000; cost of Revenue from Operations (Cost of Goods Sold) was 80% of sales; Equity Share Capital ₹ 7,00,000; General Reserve ₹ 3,00,000; Operating Expenses ₹ 10,000; Quick Assets ₹ 6,00,000; 9% Debentures ₹ 5,00,000; Closing Inventory ₹ 50,000; Prepaid Expenses ₹ 10,000 and Current Liabilities ₹ 4,00,000. 

From the following informations, calculate Return on Investment (or Return on Capital Employed):

Particulars

Share Capital

5,00,000

Reserves and Surplus 2,50,000
Net Fixed Assets 22,50,000
Non-current Trade Investments 2,50,000
Current Assets 11,00,000
10% Long-term Borrowings 20,00,000
Current Liabilities 8,50,000

Long-term Provision

NIL


The Debt Equity ratio of a company is 1: 2. State whether 'Issue of bonus shares' will increase, decrease or not change the Debt Equity Ratio.


Current Ratio is ____________.


Investment (Net Assets) Turnover Ratio can be calculated as ______?


X Ltd. has a Debt-Equity Ratio of 3 : 1. According to the management, it should be maintained at 1 : 1. What are the choices in front of management to do so?


Revenue from the sale of goods manufactured is shown in the Statement of Profit and Loss as ______


Read the following information and answer the given question:

Year 2020 2019 2018
Amount (in ₹) (in ₹) (in ₹)
Outstanding Expenses 50,000 40,000 25,000
Prepaid Expenses 3,00,000 2,50,000 3,50,000
Trade Payables 18,00,000 16,00,000 14,00,000
Inventory 12,00,000 10,00,000 11,00,000
Trade Receivables 11,00,000 8,00,000 10,00,000
Cash in hand 17,00,000 12,00,000 15,00,000
Revenue from operations 24,00,000 18,00,000 20,00,000
Gross Profit Ratio 12% 15% 18%

Inventory turnover ratio for the year 2020 will be ______. (Choose the correct alternative)


From the following calculate Interest coverage ratio

Net profit after tax Rs 12,00,000; 10% debentures Rs 1,00,00,000; Tax Rate 40%


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×