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प्रश्न
Answer the following question:
The current ratio of a company is 2: 1. State giving reason whether the purchase of goods on credit will increase, decrease, or not change the ratio.
उत्तर
Decline, as both Current Assets and Current Liabilities, have increased due to the purchase of goods on credit.
For example, a company has Current Assets of ₹ 2,00,000 and Current Liabilities of ₹ 1,00,000. Afterward, goods of ₹ 10,000 were purchased on credit.
Current Ratio = `"Current Assets"/"Current Liabilities" = (2,00,000 + 10,000∗)/(1,00,000+10,000∗) = 1.9090 : 1`
∗ Purchase of goods on credit will increase the stock and increase the creditors by ₹10,000
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संबंधित प्रश्न
A company had Current Assets of ₹4,50,000 and Current Liabilities of ₹2,00,000. Afterwards it purchased goods for ₹30,000 on credit. Calculate Current Ratio after the purchase.
Current Liabilities of a company are ₹ 6,00,000. Its Current Ratio is 3 : 1 and Liquid Ratio is 1 : 1. Calculate value of Inventory.
Assuming That the Debt to Equity Ratio is 2 : 1, state giving reasons, which of the following transactions would (i) increase; (ii) Decrease; (iii) Not alter Debt to Equity Ratio:
Compute Trade Receivables Turnover Ratio from the following:
| 31st March 2018 (₹) | 31st March 2019 (₹) | |
| Revenue from Operations (Net Sales) | 8,00,000 | 7,00,000 |
| Debtors in the beginning of year | 83,000 | 1,17,000 |
| Debtors at the end of year | 1,17,000 | 83,000 |
| Sales Return | 1,00,000 | 50,000 |
Closing Trade Receivables ₹ 4,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 2,00,000; Revenue from Operations, i.e., Revenue from Operations, i.e., Net Sales ₹ 15,00,000. Calculate Trade Receivables Turnover Ratio
[Hint: 1. Net Credit Sales = Total Sales − Cash Sales
2. Opening Trade Receivables = Closing Trade Receivables − Excess of Closing Trade Receivables over Opening Trade Receivables.]
Calculate Cost of Revenue from Operations from the following information:
Revenue from Operations ₹ 12,00,000; Operating Ratio 75%; Operating Expenses ₹ 1,00,000.
Operating Cost ₹ 3,40,000; Gross Profit Ratio 20%; Operating Expenses ₹ 20,000. Calculate Operating Profit Ratio.
From the following Balance Sheet of Global Ltd., you are required to calculate Return on Investment for the year 2018-19:
BALANCE SHEET OF GLOBAL LTD.
as at 31st March, 2019
|
Particulars |
Note No. |
Amount ₹ |
| I. EQUITY AND LIABILITIES
1. Shareholder's Funds |
||
|
(a) Share Capital–Equity Shares of ₹ 10 each Fully paid |
|
5,00,000 |
|
(b) Reserves and Surplus |
|
4,20,000 |
|
2. Non-Current Liabilities |
||
|
15% Long-term Borrowings |
|
16,00,000 |
|
3. Current Liabilities |
|
8,00,000 |
|
Total |
|
33,20,000 |
| II. ASSETS | ||
|
1. Non-Current Assets |
||
|
(a) Fixed Assets |
|
16,00,000 |
|
(b) Non-Current Investments: |
|
|
|
(i) 10% Investments |
|
2,00,000 |
|
(ii) 10% Non-trade Investments |
|
1,20,000 |
|
2. Current Assets |
14,00,000 | |
|
Total |
|
33,20,000 |
Additional Information: Net Profit before Tax for the year 2018-19 is rs 9,72,000.
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:
From the following information, calculate any two of the following ratios:
(ii) Debt to Equity Ratio; and
(iii) Operating Ratio.
Choose the appropriate alternative from the given options:
Bishan and Sudha were partners in firm sharing profits and losses in the ratio of 5 : 3. Alena was admitted as a new partner. It was decided that the new profit sharing ratio of Bishan, Sudha, and Alena will be 10: 6: 5. The sacrificing ratio of Bishan and Sudha will be:
Current Ratio is ____________.
Which items are included in current assets to get the current ratio?
Items excluded in liquid assets are:
State giving reasons which of the following transactions would improve, reduce and not change the current ratio
The current ratio is 2:1
"Repayment of current liability"
The current ratio is 2:1
State giving reasons which of the following transactions would improve, reduce and not change the current ratio.
"Payment of dividend."
The ______ ratios provide the information critical to the long run operation to the firm.
Which ratios measure the firm's ability to meet its short-term obligations in time?
Tangible Assets of the firm are ₹ 14,00,000 and outside liabilities are ₹ 4,00,000. Profit of the firm is ₹ 1,50,000 and the normal rate of return is 10%. The amount of capital employed will be:
What relationship will be established to study:
Inventory Turnover
