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Question
Working Capital ₹ 3,60,000; Total :Debts ₹ 7,80,000; Long-term Debts ₹ 6,00,000; Inventories ₹ 1,80,000. Calcltate Liquid Ratio.
Solution
Current Liabilities = Total Debts − Long-term Debts
= 7,80,000 − 6,00,000 = 1,80,000
Current Assets = Current Liabilities + Working Capital
= 1,80,000 + 3,60,000 = 5,40,000
Quick Assets = Current Assets − Stock
= 5,40,000 − 1,80,000 = 3,60,000
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RELATED QUESTIONS
You are able to collect the following information about a company for two years:
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|
|
2015-16 |
|
2016-17 |
|
Trade receivables on Apr. 01 |
Rs. |
4,00,000 |
Rs |
5,00,000 |
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Trade receivables on Mar. 31 |
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|
Rs |
5,60,000 |
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Stock in trade on Mar. 31 |
Rs. |
6,00,000 |
Rs |
9,00,000 |
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Revenue from operations (at gross profit of 25%) |
Rs. |
3,00,000 |
Rs |
24,00,000 |
Calculate Inventory Turnover Ratio and Trade Receivables Turnover Ratio.
Debt to Equity Ratio of a company is 0.5:1. Which of the following suggestions would increase, decrease or not change it:
(i) Issue of Equity Shares:
(ii) Cash received from debtors:
(iii) Redemption of debentures;
(iv) Purchased goods on Credit?
Calculate Total Assets to Debt Ratio from the following information:
Long-term Debts ₹ 4,00,000; total Assets ₹ 7,70,000.
State with reason, whether the Proprietary Ratio will improve, decline or will not change because of the following transactions if Proprietary Ratio is 0.8 : 1:
(i) Obtained a loan of ₹ 5,00,000 from State Bank of India payable after five years.
(ii) Purchased machinery of ₹ 2,00,000 by cheque.
(iii) Redeemed 7% Redeemable Preference Shares ₹ 3,00,000.
(iv) Issued equity shares to the vendor of building purchased for ₹ 7,00,000.
(v) Redeemed 10% redeemable debentures of ₹ 6,00,000.
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 |
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.
Compute Gross Profit Ratio from the following information:
Cost of Revenue from Operations (Cost of Goods Sold) ₹5,40,000; Revenue from Operations (Net Sales) ₹6,00,000.
Compute Gross Profit Ratio from the following information:
Revenue from Operations, i.e., Net Sales = ₹4,00,000; Gross Profit 25% on Cost.
Calculate Gross Profit Ratio from the following data:
Average Inventory ₹3,20,000; Inventory Turnover Ratio 8 Times; Average Trade Receivables ₹4,00,000; Trade Receivables Turnover Ratio 6 Times; Cash Sales 25% of Net Sales.
Calculate Operating Profit Ratio,in each of the following alternative cases:
Case 1: Revenue from Operations (Net Sales) ₹ 10,00,000; Operating Profit ₹ 1,50,000.
Case 2: Revenue from Operations (Net Sales) ₹ 6,00,000; Operating Cost ₹ 5,10,000.
Case 3: Revenue from Operations (Net Sales) ₹ 3,60,000; Gross Profit 20% on Sales; Operating Expenses ₹ 18,000
Case 4: Revenue from Operations (Net Sales) ₹ 4,50,000; Cost of Revenue from Operations ₹ 3,60,000; Operating Expenses ₹ 22,500.
Case 5: Cost of Goods Sold, i.e., Cost of Revenue from Operations ₹ 8,00,000; Gross Profit 20% on Sales; Operating Expenses ₹ 50,000.
Net Profit before Interest and Tax ₹6,00,000; Net Fixed Assets ₹20,00,000; Net Working Capital ₹10,00,000; Current Assets ₹11,00,000. Calculate Return on Investment.
Following is the Balance Sheet of the Bharati Ltd. as at 31st March, 2019:
|
Particulars |
Note No. |
Amount (₹) |
|
| I. EQUITY AND LIABILITIES
1. Shareholder's Funds |
|||
|
(a) Share Capital |
7,50,000 |
||
|
(b) Reserves and Surplus: |
|||
|
Surplus, i.e., Balance in Statement of Profit and Loss: |
|||
|
Opening Balance |
6,30,000 |
20,88,000 |
|
|
Add: Transfer from Statement of Profit and Loss |
14,58,000 |
||
|
2. Non-Current Liabilities |
|||
|
15% Long-term Borrowings |
24,00,000 |
||
|
3. Current Liabilities |
12,00,000 |
||
|
Total |
64,38,000 |
||
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
(a) Fixed Assets |
27,00,000 |
||
|
(b) Non-Current Investments: |
|||
|
(i) 10% Investments |
3,00,000 |
||
|
(ii) 10% Non-trade Investments |
1,80,000 |
||
| 2. Current Assets |
32,58,000 |
||
|
Total |
64,38,000 |
||
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