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प्रश्न
- A company had a liquid ratio of 1.5 and current ratio of 2 and inventory turnover ratio 6 times. It had total current assets of ₹ 8,00,000. Find out annual sales if goods are sold at 25% profit on cost.
- Calculate debt to capital employed ratio from the following information.
Shareholder funds ₹ 15,00,000 8% Debenture ₹ 7,50,000 Current liabilities ₹ 2,50,000 Non-current Assets ₹ 17,50,000 Current Assets ₹ 7,50,000
उत्तर
(a) Current Ratio = `"Current Assets"/"Current Liabilities"`
`2 = (8,00,000)/("Current Liabilities")`
So, Current Liabilities = ₹ 4,00,000
Liquid Ratio `= "Liquid Assets"/"Current Liabilities"`
`1.5 = "Liquid Assets"/"4,00,000"`
So, Liquid Assets = ₹ 6,00,000
Inventory = Current Assets - Liquid Assets
Inventory = 8,00,000 – 6,00,000
Inventory = ₹ 2,00,000
Inventory Turnover Ratio = `"Cost of Revenue From Operations"/"Average Inventory"`
`6 = "Cost of Revenue from Operations"/(2,00,000)`
Cost of Revenue from Operations = ₹ 12,00,000
Gross Profit = 25% of Cost i.e ₹ 3,00,000
Revenue From Operations = Cost of Revenue from Operations + Gross Profit
= 12,00,000 + 3,00,000
= ₹ 15,00,000
(b) Debt to Capital employed ratio = `"Debt"/"Capital Employed"`
Debt to Capital employed ratio = `(7,50,000)/(7,50,000 + 15,00,000)`
`= (7,50,000)/(22,50,000)`
Debt to Capital employed ratio = `1/3` = 0.33 : 1
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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
Short Answer Question
What do you mean by Ratio Analysis?
Long Answer Question
What are liquidity ratios? Discuss the importance of current and liquid ratio.
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.
Give one word/term/phrase for the following statement.
The ratio that establishes relationship between Quick Assets and Current Liabilities
State true or false with reason.
Activity Ratios Turnover Ratios are the same.
Answer in one sentence only.
Give the formula of Gross Profit Ratio?
Answer in one sentence only.
Give the formula of current ratio?
Answer in one sentence only.
State the formula of Average Stock?
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 Net Profit Ratio from the following
| Sales | ₹ 3,80,000 |
| Cost of good sold | ₹ 2,60,000 |
| Indirect Exp | ₹ 60,000 |
Calculate Operating Ratio
| Cost of good sold | ₹ 3,50,000 |
| Operating Exp. | ₹ 30,000 |
| Sales | ₹ 5,00,000 |
| Sales Return | ₹ 30,000 |
Accounting ratios are an important tool of ____________.
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:
An accounting ratio is a ____________.
What are the advantages of Ratio Analysis?
What are the Limitations of Ratio Analysis?
Which are the ratios that comes under Functional basis of classification?
______ 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.
______ratios are calculated for measuring the efficiency of operations of business based on effective utilization of resources.
Do you agree or disagree with the following statements:
ROCE should be less than ROI.
Calculate Gross profit ratio:
Sales = ₹ 4,32,000, Net Purchase = ₹ 2,40,000, Sales return = ₹ 32,000, Closing stock = ₹ 40,000, Opening stock = ₹ 72,000.
Calculate Net profit ratio from the following:
Sales = ₹ 6,08,000, Cost of goods sold = ₹ 4,16,000,
Indirect expenses = ₹ 96,000.
Calculate operating ratio:
Cost of goods sold= ₹ 5,60,000, Operating expenses= ₹ 48,000,
Sales = ₹ 8,00,000, Sales Return= ₹ 48,000.
