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Question
A Compay had the following Current Assets and Current Liabilities
| Debtors | ₹ 1,20000 | Creditors | ₹ 60,000 |
| Bills Payable | ₹ 40,000 | Stock | ₹ 60,000 |
| Loose Tools | ₹ 20,000 | Bank overdraft | ₹ 20,000 |
Calculate Current Ratio.
Solution
(1) Current Assets = Debtors + Stock + Loose Tools
= 1,20,000 + 60,000 + 20,000
= ₹ 2,00,000
(2) Current liabilities = Creditors + Bills payable + Bank overdraft
= 60,000 + 40,000 + 20,000
= ₹ 1,20,000
(3) Current ratio =`"Current assets"/ "Current liabilities"`
=`"2,00,000"/ "1,20,000"`
=` 5/ 3`
Current ratio = 5 : 3
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Long Answer Question
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| 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 |
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| 2) Current Liabilities | ₹ 1,00,000 |
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Accounting ratios are an important tool of ____________.
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