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Shareholders' Funds ₹ 1,60,000; Total Debts ₹ 3,60,000; Current Liabilities ₹ 40,000. Calculate Total Assets to Debt Ratio. - Accountancy

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प्रश्न

Shareholders' Funds  ₹ 1,60,000; Total Debts ₹ 3,60,000; Current Liabilities ₹ 40,000.
Calculate Total Assets to Debt Ratio.

योग

उत्तर

Total Debts = 3,60,000

Shareholders’ Funds = 1,60,000

Current Liabilities = 40,000

Total Assets = Total Debts + Shareholders’ Funds

= 3,60,000 + 1,60,000 = 5,20,000

Long-term Debts = Total Debt − Current Liabilities

= 3,60,000 − 40,000 = 3,20,000

Total Assets to Debt Ratio = `"Total Assets"/"Long-term Debts" = 520000/320000 = 13 : 8` or 1.625 : 1

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Types of Ratios
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अध्याय 3: Accounting Ratios - Exercises [पृष्ठ ९६]

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टीएस ग्रेवाल Accountancy - Analysis of Financial Statements [English] Class 12
अध्याय 3 Accounting Ratios
Exercises | Q 45 | पृष्ठ ९६

संबंधित प्रश्न

Short Answer Question

What are the various types of ratios?


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.


The current ratio provides a better measure of overall liquidity only when a firm’s inventory cannot easily be converted into cash. If inventory is liquid, the quick ratio is a preferred measure of overall liquidity. Explain.


A trading firm’s average inventory is Rs 20,000 (cost). If the inventory turnover ratio is 8 times and the firm sells goods at a profit of 20% on sale, ascertain the profit of the firm.


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.


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.


₹ 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


Calculate Inventory Turnover Ratio in each of the following alternative cases:
Case 1: Cash Sales 25% of Credit Sales; Credit Sales ₹3,00,000; Gross Profit 20% on Revenue from Operations, i.e., Net Sales; Closing Inventory ₹1,60,000; Opening Inventory ₹40,000.
Case 2: Cash Sales 20% of Total Sales; Credit Sales ₹4,50,000; Gross Profit 25% on Cost; Opening Inventory ₹37,500; Closing Inventory ₹1,12,500.


Operating Cost ₹ 3,40,000; Gross Profit Ratio 20%; Operating Expenses ₹ 20,000. Calculate Operating Profit Ratio.


Cash Sales ₹ 2,20,000; Credit Sales ₹ 3,00,000; Sales Return ₹ 20,000; Gross Profit ₹ 1,00,000; Operating Expenses ₹ 25,000; Non-operating incomes ₹ 30,000; Non-operating Expenses ₹ 5,000. Calculate Net Profit Ratio.


Calculate Return on Investment (ROI) from the following details: Net Profit after Tax ₹ 6,50,000; Rate of Income Tax 50%; 10% Debentures of ₹ 100 each ₹ 10,00,000; Fixed Assets at cost ₹ 22,50,000; Accumulated Depreciation on Fixed Assets up to date ₹ 2,50,000; Current Assets ₹ 12,00,000; Current Liabilities ₹ 4,00,000.


Net Profit before Interest and Tax ₹2,50,000; Capital Employed ₹10,00,000. Calculate Return on Investment.


Current ratio is stated as a crude ratio because:


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

Liquidity ratios includes which two types of ratios?


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 working capital turnover ratio?


Pick the odd one out:


Which of the following items will be adjusted to Net Profit before Tax?


Assertion (A): Debt to Equity Ratio of 2 : 1 is considered satisfactory. Generally, a Low Ratio is considered favourable.

Reason (R): This ratio indicates the proportionate claims of owners and outsiders on firm's assets. High Ratio shows claims of outsiders are greater but Low Ratio shows outsiders claims are less.


Read the following information and answer the given question:

Year 2020 2019 2018
Amount (in ₹) (in ₹) (in ₹)
Outstanding Expenses 50,000 40,000 25,000
Prepaid Expenses 3,00,000 2,50,000 3,50,000
Trade Payables 18,00,000 16,00,000 14,00,000
Inventory 12,00,000 10,00,000 11,00,000
Trade Receivables 11,00,000 8,00,000 10,00,000
Cash in hand 17,00,000 12,00,000 15,00,000
Revenue from operations 24,00,000 18,00,000 20,00,000
Gross Profit Ratio 12% 15% 18%

Cost of Revenue from Operations for the year 2020 would be ______.


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