हिंदी

If Profit before Interest and Tax is ₹5,00,000 and Interest on Long-term Funds is ₹1,00,000, Find Interest Coverage Ratio. - Accountancy

Advertisements
Advertisements

प्रश्न

If Profit before Interest and Tax is ₹5,00,000 and interest on Long-term Funds is ₹1,00,000, find Interest Coverage Ratio.

योग

उत्तर

Net Profit before Interest and Tax = 5,00,000

Interest = 1,00,000

Interest Coverage Ratio

= `"Net Profit before Interest and Tax"/"Interest"`

`= 500000/100000 = 5   "times"`

shaalaa.com
Types of Ratios
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 3: Accounting Ratios - Exercises [पृष्ठ ९८]

APPEARS IN

टीएस ग्रेवाल Accountancy - Analysis of Financial Statements [English] Class 12
अध्याय 3 Accounting Ratios
Exercises | Q 58 | पृष्ठ ९८

संबंधित प्रश्न

What relationship will be established to study:

Working Capital Turnover


X Ltd. has Current Ratio of 4.5 : 1 and a Quick Ratio of 3 : 1. If its inventory is  ₹  36,000, find out its total Current Assets and total Current Liabilities.


Total Debt ₹12,00,000; Shareholders' Funds ₹2,00,000; Reserves and Surplus ₹50,000; Current Assets ₹5,00,000; Working Capital ₹1,00,000. Calculate Total Assets to Debt Ratio.


Revenue from Operations: Cash Sales ₹ 5,00,000; Credit Sales ₹ 6,00,000; Sales Return ₹ 1,00,000. Current Assets ₹ 3,00,000; Current Liabilities ₹ 1,00,000. Calculate Working Capital Turnover Ratio.


Compute Gross Profit Ratio from the following information:
Cost of Revenue from Operations (Cost of Goods Sold) ₹5,40,000; Revenue from Operations (Net Sales) ₹6,00,000.


Cost of Revenue from Operations (Cost of Goods Sold) ₹3,00,000. Operating Expenses ₹1,20,000. Revenue from Operations: Cash Sales ₹5,20,000; Return ₹20,000. Calculate Operating Ratio.


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


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.


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:


Calculate 'Total Assets to Debt ratio' from the following information:

 
Equity Share Capital 4,00,000
Long Term Borrowings 1,80,000
Surplus i.e. Balance in statement of Profit and Loss 1,00,000
General Reserve 70,000
Current Liabilities 30,000
Long Term Provisions 1,20,000

Accounting ratios are classified as under:


Which of the following are included in traditional classification of ratios?

  1. Liquidity Ratios
  2. Statement of Profit and loss Ratios
  3. Balance Sheet Ratios
  4. Profitability Ratios
  5. Composite Ratios
  6. Solvency Ratios

The following groups of ratios primarily measure risk.


Which are the ratios that comes under traditional basis of classification?


Debt-Equity Ratio can be calculated as ______?


The ______ may indicate that the firm is experiencing stock outs and lost sales.


Read the following information and answer the given question:

X Ltd. made a profit of 5,00,000 after consideration of the following items:

   
(i) Goodwill written off 5,000
(ii) Depreciation on Fixed Tangible Assets 50,000
(iii) Loss on Sale of Fixed Tangible
Assets (Machinery)
20,000
(iv) Provision for Doubtful Debts 10,000
(v) Gain on Sale of Fixed Tangible Assets (Land) 7,500

Additional information:

Particulars 31.3.2019
(₹)
31.3.2018
(₹)
Trade Receivables 78,800 52,000
Prepaid Expenses 3,000 2,000
Trade Payables 51,000 30,000
Expenses Payable 20,000 34,000

How will goodwill written off be adjusted in the cash flow statement?


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


______ ratios are a measure of the speed with which various accounts are converted into sales.


What relationship will be established to study:

Trade payables turnover


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×