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Question
From the following information of Geetha Ltd., Calculate fixed assets turnover ratio
(i) Revenue from operations during the year was ₹ 55,00,000.
(ii) Fixed assets at the end of the year ₹ 5,00,000
Solution
Fixed assets turnover ratio- `"Revenue from operations"/"Average trade assets"`
`5,00,000 = (55,00,000)/"Average trade assets"`
Average trade payable = `5500000/500000` = 11 times
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| Balance Sheet of Sundaram Ltd. as on 31.03.2019 |
|
| Particulars | Amount ₹ |
| I EQUITY AND LIABILITIES | |
| 1. Shareholders’ Fund | |
| a) Share capital | |
| (i) Equity share capital | 2,50,000 |
| (ii) Preference share capital | 1,50,000 |
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| 2. Non – Current Liabilities | |
| Long term borrowings | |
| 3. Current liabilities | |
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| Total | 6,00,000 |
| II ASSETS | |
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| I. EQUITY AND LIABILITIES | |
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| (a) Share capital | |
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| II. Other Income | 40,000 | |
| III. Total revenue (I+II) | 15,40,000 | |
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| II. Other income: | |
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| III. Total revenues (I+II) | 4,04,000 |
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