Advertisements
Advertisements
प्रश्न
A company had a liquid ratio of 1.5: 1 and a current ratio of 2: 1. Its inventory turnover ratio was 6 times. It had total current assets of 2,00,000.
Find out revenue from operations if the goods are sold at a 25% profit on cost.
उत्तर
|
Current Assets |
= |
₹ 2,00,000 |
|
Current Ratio of the firm |
= |
Current Assets/Current Liabilities |
|
2 |
= |
2,00,000/Current Liabilities |
|
Current Liabilities |
= |
₹1,00,000 |
|
Quick Ratio |
= |
Quick Assets/Current Liabilities |
|
1.5 |
= |
Quick Assets/1,00,000 |
|
Quick Assets |
= |
₹ 1,50,000 |
|
We know that, Quick Assets |
= |
Current Assets – Stock |
|
Using the above formula, Stock |
= |
Current Assets – Quick Assets |
|
= |
₹(2,00,000 – 1,50,000) |
|
|
= |
₹ 50,000 |
|
|
Assuming stock to be average stock |
||
|
Inventory Turnover Ratio |
= |
Cost of goods sold/Average Stock |
|
6 |
= |
Cost of Goods sold/50,000 |
|
Cost of Goods Sold |
= |
₹ 3,00,000 |
|
Profit on Sale of Goods |
= |
₹(3,00,000 × 25/100) = ₹ 75,000 |
|
Revenue from Operations |
= |
Cost of Goods Sold + Gross Profit |
|
= |
₹ (3,00,000 + 75,000) = ₹ 3,75,000 |
संबंधित प्रश्न
The current ratio of Z. Ltd is 1: 1. A state with reason which of the following transaction would
1. increase;
2. decrease or
3. not change the ratio.
1. Included in the trade payables was a bill payable of Rs 3,000 which was met on maturity
2. Debentures of Rs 50,000 were converted into Equity Share
State whether following statement is true or false.
Ratio Analysis is useful for inter-firm comparison.
Give one word/term/ phrase for the following statement
A particular mathematical number showing relationship between two accounting figures.
Long Answer Question
What are liquidity ratios? Discuss the importance of current and liquid ratio.
Handa Ltd.has inventory of Rs 20,000. Total liquid assets are Rs 1,00,000 and quick ratio is 2:1. Calculate current ratio.
Gross Profit Ratio indicates the relationship of gross profit to the ___________.
Current Ratio =`""/"Current Liabilities"`
Net-Profit Ratio is equal to __________.
Generally Current Ratio should be ___________.
Give one word/term/phrase for the following statement.
The ratio measures the relationship between Gross Profit and Net Sales.
State true or false with reason.
Current Ratio measures the liquidity of the business.
State true or false with reason.
Usually current ratio should be 3:1.
Answer in one sentence only.
Give the formula of gross profit?
Current Liabilities = ₹ 3,00,000
Working Capital = ₹ 8,00,000
Inventory = ₹ 2,00,000
Calculate Quick Ratio.
Calculate the Gross Profit Ratio
| Sales | ₹ 2,70,000 |
| Net purchases | ₹ 1,50,000 |
| Sales Ratio | ₹ 20,000 |
| Closing Stock | ₹ 25,000 |
| Operating Stock | ₹ 45,000 |
Calculate Operating Ratio
| Cost of good sold | ₹ 3,50,000 |
| Operating Exp. | ₹ 30,000 |
| Sales | ₹ 5,00,000 |
| Sales Return | ₹ 30,000 |
Calculate
| 1) Current Assets | ₹ 3,00,000 |
| 2) Current Liabilities | ₹ 1,00,000 |
What is current Ratio.
From the following Balance Sheet of Konal Traders prepare cash flow statement.
| Liabilities | 31.3.17 (₹) | 31.3.18 (₹) | Assets | 31.3.17 (₹) | 31.3.178 (₹) |
| Share Capital | 2,00,000 | 2,50,000 | Cash | 30,000 | 47,000 |
| Creditors | 70,000 | 45,000 | Debtors | 1,20,000 | 1,15,000 |
| Profit and Loss A/c | 10,000 | 23,000 | Stock | 80,000 | 90,000 |
| Land | 50,000 | 66,000 | |||
| 2,80,000 | 3,18,000 | 2,80,000 | 3,18,000 |
When the concept of ratio is defined in respect to the items shown in the financial statements, it is termed as:
When ratios are calculated on the basis of accounting information, they are called:
What are the Limitations of Ratio Analysis?
Which are the ratios that comes under Functional basis of classification?
Current Assets: ₹ 1,00,000. Current Liabilities : ₹ 60,000. Calculate Current Ratio.
______ ratios are calculated to determine the ability of the business to service its debt in the long run.
The debt equity ratio of M Ltd. is 2:1. State with reasons whether the following transaction will increase, decrease or not change the debt equity ratio :
- Obtained a loan from ICICI Bank ₹1,00,000 payable after 5 years.
- Purchased machinery for cash ₹1,50,000.
- Redeemed 9% debentures ₹1,00,000.
- Issued equity shares for purchase of machinery of ₹5,00,000 to the vendors.
Which one of the following statement is/are correct?
- Quick ratio is considered better than current ratio as a measure of liquidity position of business.
- Debt-equity ratio measures the short-term solvency of the business.
- Interest coverage ratio reveals the number of times interest on long-term debts is covered by the profits available for interest.
Do you agree or disagree with the following statements:
ROCE should be less than ROI.
Calculate operating ratio:
Cost of goods sold= ₹ 5,60,000, Operating expenses= ₹ 48,000,
Sales = ₹ 8,00,000, Sales Return= ₹ 48,000.
