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प्रश्न
Ratio of Current Assets (₹8,75,000) to Current Liabilities (₹3,50,000) is 2.5:1 The firm wants to maintain Current Ratio of 2:1 by purchasing goods on credit. Compute amount of goods that should be purchased on credit.
उत्तर
Current Assets = Rs 8,75,000
Current Liabilities = Rs 3,50,000
Current Ratio = 2.5:1
The business is interested to maintain its Current Ratio at 2:1 by purchasing goods on credit.
Let the amount of goods purchased on credit be ‘x’
Current Liabilities = Rs 3,50,000 + x
Current Assets = Rs 8,75,000 + x
`"Current Ratio" = "Current Assets"/ "Current liability" = (875000 + x)/(350000 + x) = 2/1`
8,75,000 + x = 7,00,000 + 2x
8,75,000 – 7,00,000 = 2x – x
1,75,000 = x
Therefore, goods worth Rs 1,75,000 must be purchased on credit to maintain the current ratio at 2:1.
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संबंधित प्रश्न
Long Answer Question
How would you study the solvency position of the firm?
Shine Limited has a current ratio 4.5:1 and quick ratio 3:1; if the inventory is 36,000, calculate current liabilities and current assets.
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.
From the following information, calculate Liquid Ratio:
|
Particulars |
₹ | Particulars |
₹ |
|||
|
Current Assets |
2,00,000 | Trade Receivables |
1,10,000 |
|||
|
Inventories |
50,000 | Current Liabilities |
70,000 |
|||
|
Prepaid Expenses |
10,000 |
|
||||
Total Assets ₹22,00,000; Fixed Assets ₹10,00,000; Capital Employed ₹20,00,000. There were no Long-term Investments.
Calculate Current Ratio.
From the following calculate: (i) Current Ratio; and (ii) Quick Ratio:
| ₹ | ₹ | ||
| Total Debt | 6,00,000 | Long-term Borrowings | 2,00,000 |
| Total Assets | 8,00,000 | Long-term Provisions | 2,00,000 |
| Fixed Assests (Tangible) | 3,00,000 | Inventories | 95,000 |
| Non-current Investment | 50,000 | Prepaid Expenses | 5,000 |
| Long-term Loans and Advances | 50,000 |
Total Debt ₹15,00,000; Current Liablities ₹5,00,000; Capital Employed ₹15,00,000. Calculate Total Assets to Debt Ratio.
Calculate Trade Payables Turnover Ratio and Average Debt payment Period from the following information:
| 1st April, 2018 ₹ |
31st March, 2019 ₹ |
|
| Sundry Creditors | 1,50,000 | 4,50,000 |
| Bills Payable | 50,000 | 1,50,000 |
Total Purchases ₹ 21,00,000; Purchases Return ₹ 1,00,000; Cash Purchases ₹ 4,00,000.
y Ltd.'s profit after interest and tax was ₹ 1,00,000. Its Current Assets were ₹ 4,00,000; Current Liabilities ₹ 2,00,000 ; Fixed Assets ₹ 6,00,000 and 10% Long-term Debt ₹ 4,00,000. The rate of tax was 20%. Calculate 'Return on Investment' of Y Ltd.
Following is the Balance Sheet of the Bharati Ltd. as at 31st March, 2019:
|
Particulars |
Note No. |
Amount (₹) |
|
| I. EQUITY AND LIABILITIES
1. Shareholder's Funds |
|||
|
(a) Share Capital |
7,50,000 |
||
|
(b) Reserves and Surplus: |
|||
|
Surplus, i.e., Balance in Statement of Profit and Loss: |
|||
|
Opening Balance |
6,30,000 |
20,88,000 |
|
|
Add: Transfer from Statement of Profit and Loss |
14,58,000 |
||
|
2. Non-Current Liabilities |
|||
|
15% Long-term Borrowings |
24,00,000 |
||
|
3. Current Liabilities |
12,00,000 |
||
|
Total |
64,38,000 |
||
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
(a) Fixed Assets |
27,00,000 |
||
|
(b) Non-Current Investments: |
|||
|
(i) 10% Investments |
3,00,000 |
||
|
(ii) 10% Non-trade Investments |
1,80,000 |
||
| 2. Current Assets |
32,58,000 |
||
|
Total |
64,38,000 |
||
You are required to calculate Return on Investment for the year 2018-19 with reference to Opening Capital Employed.
From the information given below, calculate any three of the following ratio:
(ii) Working Capital Turnover Ratio:
(iii) Debt to Equity Ratio; and
(iv) Proprietary Ratio.
| ₹ | ₹ | |||
| Revenue from Operations (Net Sales) | 5,00,000 | Current Liabilities | 1,40,000 | |
| Cost of Revenue from Operations (Cost of Goods Sold) | 3,00,000 | Paid-up Share Capital | 2,50,000 | |
| Current Assets | 2,00,000 | 13% Debentures | 1,00,000 |
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.
Higher the ratio, the more favourable it is, doesn't stand true for:
The most precise test of liquidity is:
Collection of debtors:
Which items are included in current assets to get the current ratio?
Inventory Turnover Ratio can be calculated as ______?
What relationship will be established to study:
Inventory Turnover
What relationship will be established to study:
Trade Receivables Turnover
