Advertisements
Advertisements
प्रश्न
From the following Balance Sheet and other information, calculate following ratios: (i) Debt-Equity Ratio (ii) Working Capital Turnover Ratio (iii) Trade Receivables Turnover Ratio
Balance Sheet as at March 31, 2017
| Particulars | Note No. | Rs. |
| I. Equity and Liabilities: | ||
| 1. Shareholders’ funds | ||
| a) Share capital | 10,00,000 | |
| b) Reserves and surplus | 9,00,000 | |
| 2. Non-current Liabilities | ||
| Long-term borrowings | 12,00,000 | |
| 3. Current Liabilities | ||
| Trade payables | 5,00,000 | |
| Total | 36,00,000 | |
| II. Assets | ||
| 1. Non-current Assets | ||
| a) Fixed assets | ||
| Tangible assets | 18,00,000 | |
| 2. Current Assets | ||
| a) Inventories | 4,00,000 | |
| b) Trade Receivables | 9,00,000 | |
| c) Cash and cash equivalents | 5,00,000 | |
| Total | 36,00,000 |
Additional Information: Revenue from Operations Rs. 18,00,000
उत्तर
1) Debt-Equity Ratio
Debt Equity Ratio = `"Debt"/"Equity"`
=`"12,00,000"/"19,00,000"`
= 0.63 : 1
Debt = Long Term Borrowings = Rs 12,00,0000
Equity = Share Capital + Reserve and Surplus
= 10,00,000 + 9,00,000
= Rs 19,00,000
2. Working Capital Turnover Ratio
Working Capital Turnover Ratio = `"Ravenue From Operation"/"Working Capital"`
= `"18,00,000"/"13,00,000"`
= 1.39 times
Revenue from Operations = Rs 18, 00,000
Working Capital = Current Assets – Current Liabilities
= 18,00,000 – 5,00,000
= Rs 13,00,000
3. Trade Receivables Turnover Ratio
Trade Receivables Turnover Ratio = `"Net Credit Sales"/"Average Trade Receivables"`
= `[18,00,000]/[9,00,000]`
= 2 times
Net Credit Sales = Rs 18,00,000
Average Trade Receivables = Rs 9,00,000
Notes:
1. Revenue from Operations are assumed to be revenue generated from credit sales.
2. The amount of trade receivables given in the Balance Sheet is assumed to be Average Trade Receivables.
APPEARS IN
संबंधित प्रश्न
Short Answer Question
The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they become due. What are the ratios used for this purpose?
Current Ratio is 2.5, Working Capital is ₹ 1,50,000. Calculate the amount of Current Assets and Current Liabilities.
The Quick Ratio of a company is 0.8:1. State with reason, whether the following transactions will increase, decrease or not change the Quick Ratio:
(i) Purchase of loose tools for ₹2,000; (ii) Insurance premium paid in advance ₹500; (iii) Sale of goods on credit ₹3,000; (iv) Honoured a bills payable of ₹5,000 on maturity.
Total Assets ₹ 2,60,000; Total Debts ₹ 1,80,000; Current Liabilities ₹ 20,000. Calculate Debt to Equity 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:
From the following information, calculate Total Assets to Debt Ratio:
| ₹ | ₹ | |||
| Fixed Assets (Gross) | 6,00,000 | Accumulated Depreciation | 1,00,000 | |
| Non-current Investments | 10,000 | Long-term Loans and Advances | 40,000 | |
| Current Assets | 2,50,000 | Current Liabilities | 2,00,000 | |
| Long-term Borrowings | 3,00,000 | Long-term Provisions | 1,00,000 |
State with reason, whether the Proprietary Ratio will improve, decline or will not change because of the following transactions if Proprietary Ratio is 0.8 : 1:
(i) Obtained a loan of ₹ 5,00,000 from State Bank of India payable after five years.
(ii) Purchased machinery of ₹ 2,00,000 by cheque.
(iii) Redeemed 7% Redeemable Preference Shares ₹ 3,00,000.
(iv) Issued equity shares to the vendor of building purchased for ₹ 7,00,000.
(v) Redeemed 10% redeemable debentures of ₹ 6,00,000.
₹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.
From the following information, calculate value of Opening Inventory:
| Closing Inventory | = | ₹ 68,000 |
| Total Sales | = | ₹ 4,80,000 (including Cash Sales ₹ 1,20,000) |
| Total Purchases | = | ₹ 3,60,000 (including Credit Purchases ₹ 2,39,200) |
Goods are sold at a profit of 25% on cost.
₹ 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold). Inventory Turnover Ratio 8 times; Inventory in the beginning is 2 times more than the inventory at the end. Calculate value of Opening and Closing Inventories
| Credit Revenue from Operations, i.e., Net Credit Sales for the year | 1,20,000 |
| Debtors | 12,000 |
| Billls Receivable | 8,000 |
Calculate Trade Receivables Turnover Ratio.
Compute Gross Profit Ratio from the following information:
Revenue from Operations, i.e., Net Sales = ₹4,00,000; Gross Profit 25% on Cost.
Calculate Operating Ratio from the following information:
Operating Cost ₹ 6,80,000; Gross Profit 25%; Operating Expenses ₹ 80,000.
From the following calculate:
(b) Working Capital Turnover Ratio.
| ₹ | ||
| (i) | Revenue from Operations | 1,50,000 |
| (ii) | Total Assets | 1,00,000 |
| (iii) | Shareholders' Funds | 60,000 |
| (iv) | Non-current Liabilities | 20,000 |
| (v) | Non-current Assets | 50,000 |
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.
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:
Accounting ratios are classified as under:
How much amount will be added while computing Net Profit before Tax?
| 01.04.2020 | 31.03.2021 | |
| Provision for Tax | ₹ 54,000 | ₹ 72,900 |
Tax paid during the year ended 31st March 2021 is ₹ 64,800.
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.
Purchased Goods on Credit for ₹ 1,00,000 for a credit of 15 months, assuming operating cycle is of 18 months.
