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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.
उत्तर
Ratio will decline.
Reason – Debt will decrease but Capital Employed will remain the same.
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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:
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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 |
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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 |
|
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(b) increase in the value of Closing Inventory by ₹ 40,000.
(c) Goods purchased for ₹ 80,000.
(d) Purchases Return ₹ 20,000.
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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 |
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Amount | (in ₹) | (in ₹) | (in ₹) |
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Gross Profit Ratio | 12% | 15% | 18% |
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