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प्रश्न
From the following information, calculate Inventory Turnover Ratio; Operating Ratio and Working Capital Turnover Ratio:
Opening Inventory ₹ 28,000; Closing Inventory ₹ 22,000; Purchases ₹ 46,000; Revenue from Operations, i.e., Net Sales ₹ 80,000; Return ₹10,000; Carriage Inwards ₹ 4,000; Office Expenses ₹ 4,000; Selling and Distribution Expenses ₹ 2,000; Working Capital ₹ 40,000.
उत्तर
(i)
Opening Inventory = 28,000
Closing Inventory = 22,000
Average Inventory = `("Opening Inventory" + "Closing Inventory")/2`
`= (28000 + 22000)/2` = Rs 25000
Cost of Goods Sold = Opening Inventory + Purchases + Carriage Inwards − Closing Inventory
= 28,000 + 46,000 + 4,000 − 22,000 = 56,000
Inventory Turnover Ratio = `"Cost of Goods Sold"/"Average Inventory" = 56000/25000` = 2.24 Times
(ii)
Operating Expenses = Office Expenses + Selling and Distribution Expenses
= 4,000 + 2,000 = 6,000
Operating Cost = Cost of Goods Sold + Operating Expenses
= 56000 + 6000 = 62000
Net Sales = Rs 80,000*
Operating Ratio = `"Operating Cost"/"Net Sales" xx 100`
`= 62000/80000 xx 100 = 77.5 %`
(iii)
Working Capital = 40,000
Working Capital Turnover Ratio = `"Net Sales"/"Working Capital" = 80000/40000` = 2 Times
*Note: Sales return will not be considered as amount of net sales is provided in the question.
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संबंधित प्रश्न
From the following information calculate:
(i) Gross Profit Ratio (ii) Inventory Turnover Ratio (iii) Current Ratio (iv) Liquid Ratio (v) Net Profit Ratio (vi) Working capital Ratio:
|
|
Rs |
|
Revenue from Operations |
25,20,000 |
|
Net Profit |
3,60,000 |
|
Cast of Revenue from Operations |
19,20,000 |
|
Long-term Debts |
9,00,000 |
|
Trade Payables |
2,00,000 |
|
Average Inventory |
8,00,000 |
|
Current Assets |
7,60,000 |
|
Fixed Assets |
14,40,000 |
|
Current Liabilities |
6,00,000 |
|
Net Profit before Interest and Tax |
8,00,000 |
Current Assets of a company is are ₹ 5,00,000. Its Current Ratio is 2.5 : 1 and Quick Ratio is 1 : 1. Calculate value of Current Liabilities, Liquid Assets and Inventory.
When Debt to Equity Ratio is 2, state giving reason, whether this ratio will increase or decrease or will have no change in each of the following cases:
(i) Sale of Land (Book value ₹4,00,000) for ₹5,00,000; (ii) Issue of Equity Shares for the purchase of Plant and Machinery worth ₹10,00,000; (iii) Issue of Preference Shares for redemption of 13% Debentures, worth ₹10,00,000.
Capital Employed ₹8,00,000; Shareholders' Funds ₹2,00,000. Calculate Debt to Equity Ratio.
Balance Sheet had the following amounts as at 31st March, 2019:
| ₹ | ₹ | |||
| 10% Preference Share Capital | 5,00,000 | Current Assets | 12,00,000 | |
| Equity Share Capital | 15,00,000 | Current Liabilities | 8,00,000 | |
| Securities Premium Reserve | 1,00,000 | Investments (in other companies) | 2,00,000 | |
| Reserves and Surplus | 4,00,000 | Fixed Assets-Cost | 60,00,000 | |
| Long-term Loan from IDBI @ 9% | 30,00,000 | Depreciation Written off | 14,00,000 |
Calculate ratios indicating the Long-term and the Short-term financial position of the company.
Shareholders' Funds ₹ 1,60,000; Total Debts ₹ 3,60,000; Current Liabilities ₹ 40,000.
Calculate Total Assets to Debt Ratio.
Total Debt ₹12,00,000; Current Liabilities ₹4,00,000; Capital Employed ₹`12,00,000. Calculate Total Assets to Debt Ratio.
From the following information, calculate Interest Coverage Ratio:
| ₹ | |
| 10,000 Equity Shares of ₹10 each | 1,00,000 |
| 8% Preference Shares | 70,000 |
| 10% Debentures | 50,000 |
| Long-term Loans from Bank | 50,000 |
| Interest on Long-term Loans from Bank | 5,000 |
| Profit after Tax | 75,000 |
| Tax | 9,000 |
From the following data, calculate Inventory Turnover Ratio:
Total Sales ₹5,00,000; Sales Return ₹50,000; Gross Profit ₹90,000; Closing Inventory ₹1,00,000; Excess of Closing Inventory over Opening Inventory ₹20,000.
A limited company made Credit Sales of ₹ 4,00,000 during the financial period. If the collection period is 36 days and the year is assumed to be 360 days, calculate:
- Trade Receivables Turnover Ratio;
- Average Trade Receivables;
- Trade Receivables at the end when Trade Receivables at the end are more than that in the beginning by ₹ 6,000.
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.
Revenue from Operations ₹ 9,00,000; Gross Profit 25% on Cost; Operating Expenses ₹ 45,000. Calculate Operating Profit Ratio.
Net Profit before Interest and Tax ₹4,00,000; 15% Long-term Debt ₹8,00,000; Shareholders' Funds ₹4,00,000. Calculate Return on Investment.
Following information is given about a company:
| ₹ | ₹ | |||
| Revenue From Operations, i.e., Net Sales Gross Profit | 1,50,000 | Opening Inventory | 29,000 | |
| Cost of Revenue From Operations | 30,000 | Closing Inventory | 31,000 | |
| (Cost of Goods Sold) | 1,20,000 | Debtors | 16,000 |
From the above information, calculate following ratios:
Which ratio is considered as safe margin of solvency?
Which Ratio establishes the relationship between current assets and current liabilities?
Debt Ratio can be calculated as ______?
Inventory Turnover Ratio can be calculated as ______?
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?
