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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 reasons for the same.
Sale of Equipment costing ₹ 10,00,000 for ₹ 9,00,000.
विकल्प
Ratio will improve.
Ratio will decline.
Ratio has no change
उत्तर
Ratio will improve.
Reason – Capital Employed will decrease and Debt will remain the same.
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संबंधित प्रश्न
Short Answer Question
The average age of inventory is viewed as the average length of time inventory is held by the firm for which explain with reasons.
From the following information calculate:
(i) Gross Profit Ratio (ii) Inventory Turnover Ratio (iii) Current Ratio (iv) Liquid Ratio (v) Net Profit Ratio (vi) Working capital Ratio:
|
|
Rs |
|
Revenue from Operations |
25,20,000 |
|
Net Profit |
3,60,000 |
|
Cast of Revenue from Operations |
19,20,000 |
|
Long-term Debts |
9,00,000 |
|
Trade Payables |
2,00,000 |
|
Average Inventory |
8,00,000 |
|
Current Assets |
7,60,000 |
|
Fixed Assets |
14,40,000 |
|
Current Liabilities |
6,00,000 |
|
Net Profit before Interest and Tax |
8,00,000 |
Current Ratio is 2.5, Working Capital is ₹ 1,50,000. Calculate the amount of Current Assets and Current Liabilities.
Trade Payables ₹ 50,000, Working Capital ₹ 9,00,000, Current Liabilities ₹ 3,00,000. Calculate Current Ratio.
State giving reasons, which of the following transactions would improve, reduce or not change the Current Ratio, if Current Ratio of a company is (i) 1:1; or (ii) 0.8:1:
(a) Cash paid to Trade Payables.
(b) Purchase of Stock-in-Trade on credit.
(c) Purchase of Stock-in-Trade for cash.
(d) Payment of Dividend payable.
(e) Bills Payable discharged.
(f) Bills Receivable endorsed to a Creditor.
(g) Bills Receivable endorsed to a Creditor dishonoured.
Quick Assets ₹ 1,50,000; Inventory (Stock) ₹ 40,000; Prepaid Expenses ₹ 10,000; Working Capital ₹ 1,20,000. Calculate Current Ratio.
Calculate Inventory Turnover Ratio from the following:
| ₹ | |
| Opening Inventory | 29,000 |
| Closing Inventory | 31,000 |
| Revenue from Operations, i.e., Sales | 3,20,000 |
| Gross Profit Ratio 25% | |
Closing Trade Receivables ₹ 4,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 2,00,000; Revenue from Operations, i.e., Revenue from Operations, i.e., Net Sales ₹ 15,00,000. Calculate Trade Receivables Turnover Ratio
[Hint: 1. Net Credit Sales = Total Sales − Cash Sales
2. Opening Trade Receivables = Closing Trade Receivables − Excess of Closing Trade Receivables over Opening Trade Receivables.]
Calculate Gross Profit Ratio from the following data:
Cash Sales are 20% of Total Sales; Credit Sales are ₹5,00,000; Purchases are ₹4,00,000; Excess of Closing Inventory over Opening Inventory ₹25,000.
From the following information, calculate Operating Ratio:
| Cost of Revenue | Revenue from Operation: | |||
| from Operations (Cost of Goods Sold) | ₹52,000 | Gross Sales | ₹ 88,000 | |
| Operating Expenses | ₹18,000 | Sales Return | ₹ 8,000 |
From the following information related to Naveen Ltd., calculate (a) Return on Investment and (b) Total Assets to Debt Ratio:
Information: Fixed Assets ₹ 75,00,000; Current Assets ₹ 40,00,000; Current Liabilities ₹ 27,00,000; 12% Debentures ₹ 80,00,000 and Net Profit before Interest, Tax and Dividend ₹ 14,50,000.
Answer the following question:
The current ratio of a company is 2: 1. State giving reason whether the purchase of goods on credit will increase, decrease, or not change the ratio.
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.
Liquid assets are determined by:
Items excluded in liquid assets are:
Consider the following data and answer the question that follows:
| Particulars | ₹ |
| Revenue From Operations | 12,00,000 |
| Cost of Revenue from Operations | 9,00,000 |
| Operating Expenses | 15,000 |
| Inventory | 20,000 |
| Other Current Assets | 2,00,000 |
| Current Liabilities | 75,000 |
| aid up Share Capital | 4,00,000 |
| Statement of Profit and Loss (Dr.) | 47,500 |
| Total Debt | 2,50,000 |
What is the quick ratio?
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?
Which ratios measure the firm's ability to meet its short-term obligations in time?
Which of the following measures the firm's ability to meet its long-term obligations?
