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प्रश्न
With the help of the given information, calculate the following ratios:
- Operating ratio
- Quick ratio
- Working capital turnover ratio
- Debt-equity ratio
Information: Equity Share Capital ₹ 50,000; 12% Preference Share Capital ₹ 40,000; 12% Debentures ₹ 30,000; Reserve and Surplus ₹ 40,000; Sales ₹ 3,00,000; Opening Inventory ₹ 20,000; Purchases ₹ 1,40,000; Wages ₹ 30,000; Closing Inventory ₹ 40,000; Selling and distribution expenses ₹ 18,000; Trade Receivables ₹ 75,000; Cash & Bank Balance ₹ 25,000 and Current Liabilities ₹ 60,000.
Hints:
(1) Working Capital = Closing Inventory + Trade Receivables + Cash & Bank Balance − Current liabilities.
(2) Reserve and Surplus includes Current year’s net profit also.
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उत्तर
(i) Cost of Revenue from Operations = Opening Inventory + Purchases + Wages − Closing Inventory
= ₹ 0,000 + ₹ 1,40,000 + ₹ 30,000 − ₹ 40,000
= ₹ 1,50,000
Operating Expenses = Selling and distribution expenses = ₹ 18,000
Revenue from Operations = Sales = ₹ 3,00,000
Operating ratio = `("Cost of Revenue from Operations" + "Operating Expenses")/("Revenue from Operations") xx 100`
= `(₹ 1,50,000 + ₹ 18,000)/(₹ 3,00,000) xx 100`
= `(₹ 1,68,000)/(₹ 3,00,000) xx 100`
= 56%
(ii) Current Assets = Closing Inventory + Trade Receivables + Cash & Bank Balance
= ₹ 40,000 + ₹ 75,000 + ₹ 25,000
= ₹ 1,40,000
Quick Assets = Current Assets − Inventories
Quick Assets = ₹ 1,40,000 − ₹ 40,000
= ₹ 1,00,000
Quick ratio = `"Quick Assets"/"Current Liabilities"`
= `(₹ 1,00,000)/(₹ 60,000)`
= 1.67 : 1
(iii) Revenue from Operations = Sales = ₹ 3,00,000
Working Capital = Current Assets − Current Liabilities
= ₹ 1,40,000 − ₹ 60,000
= ₹ 80,000
Working capital turnover ratio = `"Revenue from Operations"/"Working Capital"`
= `(₹ 3,00,000)/(₹ 80,000)`
= 3.75 Times
(iv) Long Term Debts = 12% Debentures = ₹ 30,000
Shareholder’s Funds = Equity Share Capital + Reserve & Surplus + Preference Share Capital
= ₹ 50,000 + ₹ 40,000 + ₹ 40,000
= ₹ 1,30,000
Debt-Equity Ratio = `"Long term Debts"/"Shareholder’s Funds"`
= `(₹ 30,000)/(₹ 1,30,000)`
= 0.23 : 1
