D. K. Goel solutions for Accountancy Volume 1 and 2 [English] Class 12 ISC chapter 14 - Ratio Analysis [Latest edition]

Star Ltd. submits you the following information:

Current Liabilities of the company will be:

Star Ltd. submits you the following information:

Inventory of the company will be:

Accountant of the firm wants to maintain current ratio of 2 : 1. Which of the following options will you suggest to him?

The particulars of Alpha Ltd. are given below:

The Interest Coverage Ratio of the company will be:

The particulars of Alpha Ltd. are given below:

The Proprietary Ratio of the company will be:

Total Assets to Debt Ratio will be:

Debt Equity Ratio will be:

Assuming Debt Equity Ratio of 2 : 1, which of the following will decrease this ratio?

Shareholder’s Funds will be:

Total Assets will be:

Following particulars are related to Fast Cargo Ltd.:

Gross profit 25% on Revenue from Operations.

Current Ratio of the Company will be:

Following particulars are related to Fast Cargo Ltd.:

Gross profit 25% on Revenue from Operations.

Quick Ratio of the Company will be:

Following particulars are related to Fast Cargo Ltd.:

Gross profit 25% on Revenue from Operations.

Trade Receivables Turnover Ratio will be:

Operating Ratio will be:

Operating Profit Ratio will be:

From the following information, calculate (up to two decimal places):

(1) Trade Receivables Turnover Ratio

(2) Operating Profit Ratio

(3) Net Profit Ratio

From the following Statement of Profit & Loss of Swatantra Ltd. for the year 2020-21, calculate any three ratios (up to two decimal places).

1. Gross Profit Ratio
2. Net Profit Ratio
3. Operating Profit Ratio
4. Inventory Turnover Ratio

Notes to Accounts:

From the following information, calculate Inventory Turnover Ratio (up to two decimal places):

Calculate the Gross Profit Ratio (up to two decimal places) from the following information:

Calculate the Liquid Ratio (up to two decimal places) from the following information:

For the year 2022-23:

• The Operating Profit Ratio of Noah Ltd. was 65%
• Its Revenue from Operations was ₹ 2,00,000

(a) You are required to give the formula used by the company to calculate the Operating Profit Ratio.

(b) You have been provided with two components for calculating the Operating Profit Ratio. Calculate the remaining component.

From the following particulars of NB Ltd., calculate its Cost of Revenue from Operations for the year 2023-24.

What is meant by Ratio?

Short Answer Question

What do you mean by Ratio Analysis?

Give two Objectives of ratio analysis.

Give two uses of ratio analysis.

Give two limitations of ratio analysis.

How does the quality of ratio analysis depend upon the accuracy of its financial statements?

“Accounting ratios ignore qualitative factors and are also not comparable if different firms follow different accounting policies.”

Mention two ratios in which both the figures are from Statement of Profit and Loss.

Mention two ratios in which both the figures are from Balance Sheet.

Mention two ratios in which one figure is from Profit and Loss Account and one from Balance Sheet.

How will you assess the liquidity or short-term financial position of a business?

State the objective of calculating liquidity ratios.

What is Current Ratio?

What is meant by Current Assets?

What is meant by Current Liabilities?

Why is the Bank Overdraft included in Current Liability?

What is an ideal current ratio?

What is an ideal quick ratio?

Assuming that the current ratio of a company is 0.7 : 1, mention whether this ratio would increase, decrease or not change after the following transactions:

1. Payment of ₹ 15,000 made to a creditor.
2. Purchase of inventory worth ₹ 1,00,000 on credit.

Current ratio of Reliance Textiles Ltd. is 1.5 at present. In future it wants to improve this ratio to 2. Suggest any two accounting transactions for improving the current ratio.

What is Liquid Ratio?

What are liquid assets?

When calculating the Acid Test Ratio, name two items that are excluded from current assets.

What are the other names of liquid ratio?

Why liquid ratio is considered more dependable than current ratio?

Give one point of distinction between Current Ratio and Quick Ratio.

Can Current Ratio and Quick Ratio be same at any moment?

State one transaction which results in an increase in ‘Liquid Ratio’ and no change in ‘Current Ratio’.

Why inventory is excluded from liquid assets?

Why prepaid expenses are considered as Current assets?

Why prepaid expenses are not considered as liquid assets?

What will be the impact of ‘Cash Paid to Trade Payables’ on a Current Ratio of 2 : 1? State the reason.

What will be the impact of ‘Cash Paid to Trade Payables’ on a Current ratio of 1 : 1? State the reason.

What will be the impact of ‘Cash paid to Trade Payables’ on a Current ratio of 8 : 1? State with reason.

What will be the impact of ‘Cash collected from Trade Receivables’ on a Current ratio of 2 : 1? State with reason.

What will be the impact of ‘Bills Payable given to Creditors’ on a liquid ratio of 1 : 1? State with reason.

What will be the impact of ‘B/R received from debtors’ on a Quick Ratio of 1 : 1?

Quick ratio of a company is 1.5 : 1. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company.

The Quick Ratio of a company is 0.8 : 1. State whether the Quick Ratio will improve, decline or will not change in the following cases:

1. Cash collected from Debtors ₹ 50,000.
2. Creditors of ₹ 20,000 paid off.

State with reason whether Provision for Doubtful Debts is subtracted from Trade Receivables while computing Current Ratio.

Sunshine Ltd. had a Cunent Ratio of 08 : 1; its Current Assets being ₹ 2,00,000 and Current Liabilities being ₹ 2,50,000.

What will be the revised Current Ratio of Sunshine Ltd. after it dishonors one of its Bills Payable of ₹ 30,000?

What is meant by debt-equity ratio?

What will a higher debt-equity ratio indicate?

What is proprietary ratio?

What does proprietary ratio indicate?

What does a low proprietary ratio indicate?

State one transaction which results in a decrease in ‘Debt-Equity Ratio’ and no change in ‘Current Ratio’.

The debt-equity ratio of a company is 0.8 : 1. State whether the long-term loan obtained by the company will increase, decrease or not change the ratio.

What will be the impact of ‘Issue of shares against the purchase of fixed assets’ on a debt-equity ratio of 1 : 1?

What will be impact of ‘purchase of a fixed asset on a credit of 3 months’ on a debt-equity ratio of 1 : 1?

The Debt-Equity Ratio of X Ltd. is 1 : 2. What is the effect of conversion of debentures into preference shares on this ratio?

Assuming that the Debt-Equity Ratio of a company is 2 : 1, state whether this ratio would increase, decrease or not change in the following cases:

1. Issue of new shares for cash.
2.  Repayment of a long-term bank loan.

The Debt Equity Ratio of a company is 2 : 1. State which of the following would improve, reduce or not change the ratio:

1. Issue of Equity Shares for the purchase of Plant and Machinery worth ₹ 4,00,000.
2. Sale of Furniture (Book value ₹ 4,00,000) for ₹ 3,50,000.

What does Debt to Total Assets Ratio indicate?

What does activity ratio show?

What is Inventory Turnover Ratio?

What is indicated by High Inventory Turnover Ratio?

What does Trade Receivables Turnover Ratio indicate?

What is the significance of Trade Receivables Turnover Ratio?

If Trade Receivables Turnover Ratio is more than the norm set for it, what will it indicate?

What does too low ‘Trade Receivables Turnover Ratio’ indicate?

What does too high 'Trade Receivables Turnover Ratio' indicate?

What is Trade Payables Turnover Ratio?

What is Working Capital Turnover Ratio?

What does a low working capital turnover ratio indicate?

What is G.P. Ratio?

What is N.P. ratio?

How is ‘Cost of Revenue from Operations’ Calculated?

What is an operating profit?

What are Operating Expenses?

What are non-operating expenses?

What is the difference between ‘Operating Profit’ and ‘Net Profit’?

What is the operating ratio?

How is the operating ratio calculated?

What is the significance of the operating ratio?

What is meant by ‘Operating Cost’?

What items are included in the Shareholder’s Fund?

What items are included in Equity Shareholder’s Fund?

Give the formula for calculating earning per share.

What is Gross Profit + Cost of Materials Consumed?

From the following particulars compute the Current Ratio:

Following particulars are given to you:

Calculate the Current Ratio and Quick Ratio. What Conclusions do you draw from these ratios?

From the following compute Current Ratio:

Calculate Current Ratio from the following information:

Current Ratio of a Company is 2:1. State giving reasons which of the following suggestions would improve the ratio, which would reduce it and which would not change it?

1. Purchase of goods on Credit.
2. Purchase of goods for Cash.
3. Sale of goods Costing ₹ 50,000 for ₹ 60,000 on Credit.
4. To sell a non-current asset at a slight loss.
5. To borrow money on a promissory note (B/P).
6. To give promissory note to a Creditor.
7. Payment of declared dividend.

The current ratio of a company is 2.5 : 1. State giving reasons which of the following suggestions would improve, reduce and not change it:

1. Payment to trade payables.
2. Sell machinery for cash.
3. Sale of inventory at loss on credit.
4. Cash collected from trade receivables.
5. B/R dishonoured.
6. Issue of shares.
7. Issue of shares against the purchase of a building.
8. Redemption (Repayment) of Debentures maturing during the year.
9. Purchase of Loose Tools against Cash.

Assuming that the current ratio is 1.5 : 1, state giving reasons, which of the following transactions would (i) improve, (ii) reduce, (iii) not alter the current ratio:

1. Realisation of current assets.
2. Payment of current liabilities.
3. B/R dishonoured
4. Sale of goods at par.
5. Sale of goods at profit.
6. Sale of goods at loss.
7. Purchase of goods for cash.
8. Purchase of goods on credit.
9. Sale of furniture for cash.
10. Sale of machinery on a credit of 5 months.
11. Sale of land on long-term deferred payment basis.
12. Purchase of motor car for cash.
13. Purchase of a building on a credit of 4 months.
14. Purchase of a plot of land on long-term deferred payment basis.
15. Repayment of long-term loan which was availed from a bank.
16. Issue of shares for Cash.

The Current Ratio of a Company is 3:1. State giving reasons which of the following suggestions would (i) improve, (ii) reduce, (iii) not change the Current Ratio:

1. Payment of Trade Payables.
2. Sale of goods costing ₹ 20,000 for ₹ 20,000 for Cash.
3. Sale of goods costing ₹ 20,000 for ₹ 18,000 on Credit.
4. Sale of goods costing ₹ 20,000 at a profit of ₹ 1,000.
5. Purchase of goods on Credit.
6. Purchase of goods for Cash.
7. Purchase of machinery against long-term loan.

State giving reason, whether the Current Ratio will improve or decline or will have no effect in each one of the following transactions if Current Ratio is (I) 2.5 : 1, (II) 1 : 1, (III) 0.75 : 1.

1. Paid ₹ 50,000 to a Creditor.
2. Sale of goods at a loss of 10%.
3. Sale of a Machinery for ₹ 1,00,000 (Book Value ₹ 1,20,000).
4. Payment of outstanding salaries.
5. Received ₹ 25,000 from a Debtor of ₹ 30,000 in full settlement of his account.
6. Bills payable discharged on maturity.
7. Bills Receivable drawn on debtor.
8. Purchased goods on credit.
9. Issued debentures to the vendors of machinery.
10. Payment of Dividend.

State giving reasons which of the following transactions would Improve; Reduce; or Not change the Quick Ratio if Quick Ratio is (i) 1.5 : 1; (ii) 1 : 1 or (iii) 0.8 : 1.

1. Payment of Outstanding Liabilities.
2. Debentures of ₹ 2,00,000 converted into equity shares.
3. Purchase of goods on Credit of 2 months.
4. B/R endorsed to a Creditor.
5. Sale of goods Costing ₹ 50,000 for ₹ 45,000.
6. B/R drawn on a Debtor.
7. Paid Rent ₹ 3,000 in advance. 
8. Trade receivables included a debtor, Sh. Ashok who paid his entire amount due ₹ 9,700.

Calculate Current Ratio from the following:

Working Capital ₹ 1,92,000; Long-term Debt ₹ 80,000; and Total Debt ₹ 2,00,000.

Calculate Current Ratio from the following:

Working Capital ₹ 4,80,000; Trade Payables ₹ 2,00,000 and Bank Overdraft ₹ 40,000.

Calculate Current Ratio and Liquid Ratio from the following:

Calculate Current Ratio from the following:

Working Capital ₹ 4,80,000; Current Assets ₹ 6,00,000; Inventory ₹ 4,00,000 and Trade Receivables ₹ 1,50,000.

Current Ratio 2 : 1, Quick Ratio 1.5 : 1, Current Liabilities ₹ 1,60,000. Calculate Current Assets, Quick Assets and Inventories.

Current Ratio 2.5 : 1, Quick Ratio. 8 : 1, Current Assets ₹ 2,00,000. Calculate Current Liabilities, Quick Assets and Inventory.

Working Capital ₹ 5,40,000; Current Ratio 2.8 : 1; Inventory ₹ 3,30,000. Calculate Current Assets, Current Liabilities and Quick Ratio.

Current Assets of a company were ₹ 7,20,000 and its Current Ratio was 2.4 : 1. Afterwards, it made payment of ₹ 1,00,000 to its creditors. Calculate current ratio after the payment.

Current Liabilities of a company were ₹ 1,50,000 and its current ratio was 2.2 : 1. Afterwards it purchased goods on credit for ₹ 50,000. Calculate the current ratio after the purchase of goods.

A business has a Current Ratio of 4 : 1 and a Quick Ratio of 1.2 : 1. If the Working Capital is ₹ 1,80,000, calculate the total Current Assets and Inventory.

Current Ratio 2.4; Current Assets ₹ 96,000; Inventories ₹ 42,000. Calculate the Liquid Ratio.

Quick Ratio 1.5; Current Assets ₹ 1,00,000; Current Liabilities ₹ 40,000. Calculate the value of Inventory.

A Company’s inventory is ₹ 2,00,000. Total liquid assets are ₹ 8,00,000 and quick ratio is 2 : 1. Calculate the current ratio.

A firm has Current Ratio of 4.5 : 1 and Quick Ratio of 3 : 1. If its inventory is ₹ 60,000, find out its total current assets and total current liabilities.

The Current ratio and Liquid ratio of Vishu Ltd. are 2.5 : 1 and 1.2 : 1 respectively. Calculate Liquid Assets and Current Liabilities if there is Inventory (including Loose tools of ₹ 30,000) of ₹ 6,62,000 and Prepaid Expenses of ₹ 18,000.

Current Assets ₹ 85,000; Inventory ₹ 22,000; Prepaid Expenses ₹ 3,000; Working Capital ₹ 45,000. Calculate Quick Ratio.

Quick Assets ₹ 90,000; Inventory ₹ 1,08,000; Prepaid Expenses ₹ 2,000; Working Capital ₹ 1,50,000. Calculate Current Ratio.

The ratio of Current Assets (₹ 32,00,000) to Current Liabilities (₹ 20,00,000) is 1.6 : 1. The accountant of the firm is interested in maintaining a Current Ratio of 2 : 1, by paying off a part of the Current Liabilities. Compute the amount of the Current Liabilities that should be paid so that the Current Ratio at the level 2 : 1 may be maintained.

The ratio of Current Assets (₹ 5,00,000) to Current Liabilities is 2.5 : 1. The accountant of this firm is interested in maintaining a Current Ratio of 2 : 1 by acquiring some Current Assets on Credit. You are required to suggest him the amount of Current Assets which must be acquired for this purpose.

A firm had current assets of ₹ 4,10,000 . It then paid creditors of ₹ 50,000. After this payment, the current ratio was 2.4 : 1. Ascertain the amount of Current Liabilities and Working Capital after the payment.

A firm had current assets of ₹ 7,20,000. It then purchased goods for ₹ 30,000 on credit. After this purchase, the current ratio was 3 : 1. Ascertain the amount of Current Liabilities and Working Capital after the purchase.

Calculate the Debt Equity Ratio from the following:

From the following, ascertain Debt-Equity Ratio:

Calculate Debt Equity Ratio from the following:

Calculate Debt Equity Ratio from the following:

Total Assets ₹ 2,30,000; Total Debt ₹ 1,50,000; Current Liabilities ₹ 30,000.

The debt-equity ratio of a company is 1 : 2. Which of the following suggestions would increase, decrease or not change it?

1. Issue of Equity Shares.
2. Cash Received from Trade Receivables.
3. Sale of Goods on Cash Basis.
4. Repayment of Long term Borrowing.
5. Purchased Goods on Credit.

Assuming that the debt-equity ratio is 2 : 1, state giving reasons, which of the following transactions would (i) increase (ii) decrease (iii) not alter the debt-equity ratio:

1. Issue of Preference Shares.
2. Buy-back of its own shares by a Company.
3. Issue of debentures.
4. Repayment of Bank Loan.
5. Sale of a non-current asset at par.
6. Sale of a non-current asset at profit.
7. Sale of a non-current asset at loss.
8. Purchase of a non-current asset on a credit of 3 months.
9. Purchase of a non-current asset on long-term deferred payment basis.

The Debt-Equity Ratio of a Company is 1.8 : 1. Which of the following would increase, decrease or not change it?

1. Purchase of Motor Vehicle for ₹ 20 Lac of which 60% payment is to be made immediately and remaining 40% after 18 months.
2. Sale of Machinery costing ₹ 5,00,000 for ₹ 4,00,000.
3. Tax refund of ₹ 40,000 during the year.
4. Redemption of 6% Debentures.
5. Dividend proposed by directors of the Company.
6. Dividend declared by shareholders of the Company.

Compute Debt to Total Assets Ratio from the following information:

Calculate Debt to Total Assets Ratio from the following information:

From the following information, calculate Debt to Total Assets Ratio:

Total Debt ₹ 40,00,000; Share Capital ₹ 15,00,000; Reserve and Surplus ₹ 8,00,000; Current Liabilities ₹ 5,00,000; Working Capital ₹ 7,00,000. Calculate Debt to Total Assets Ratio.

Following particulars are extracted from the books of Bharat Rubber Ltd.:

You are required to work out the following ratios:

1. Debt-Equity Ratio
2. Debt to Total Assets Ratio
3. Proprietary Ratio

Following particulars are given to you:

Calculate:

1. Debt-Equity Ratio
2. Debt to Total Assets Ratio
3. Proprietary Ratio

Calculate proprietary ratio on the basis of following particulars:

Calculate the value of Current Assets of X Ltd. from the following information:

From the following information, calculate interest coverage ratio and give your comments also:

The following particulars are given to you:

Net Profit for the year after interest and tax was ₹ 96,000. Rate of lncome Tax was 50%.

Calculate:

1. Debt-Equity Ratio
2. Proprietary Ratio
3. Interest Coverage Ratio

Also give your comments.

Calculate Interest Coverage Ratio and Rate of Interest on Bank Loan from the following information:

Calculate Inventory Turnover Ratio from the following:

Calculate Inventory Turnover Ratio from the following:

Notes to Accounts:

From the following data, calculate ‘Inventory Turnover Ratio’ when gross profit ratio is given 20%:

Calculate Inventory Turnover Ratio from the following:

Opening Inventory ₹ 42,500 ; Closing Inventory ₹ 37,500 ; Revenue from Operations (Sales) ₹3,00,000 ; Gross Profit 20% on cost.

Calculate Inventory Turnover Ratio for the year 2021-22 and 2022-23 from the following information:

(Gross Profit is 20% on cost of revenue from Operations)

In the year 2021-22 inventory decreased by ₹ 3,00,000

Compute Inventory Turnover Ratio from the following:

From the following information, calculate Inventory Turnover Ratio:

Purchases ₹ 10,00,000; Revenue from Operations (Sales) ₹ 12,00,000; Direct Expenses ₹ 48,000; Gross Profit Ratio 15% on Revenue from Operations; Closing Inventory ₹ 1,64,000.

Calculate Opening Inventory from the following information:

Purchases ₹ 5,70,000; Freight ₹ 20,000; Miscellaneous Expenses ₹ 10,000; Revenue from Operations (Sales) ₹ 5,00,000; Closing Inventory ₹ 70,000; Gross Loss 16% on Revenue from Operations.

From the given information, calculate the Inventory Turnover Ratio:

Revenue from Operations (Sales): ₹ 2,00,000; GP : 25%; Opening Inventory was 1/4th of the value of Closing Inventory; Closing Inventory was 40% of Revenue from Operations.

Calculate Inventory Turnover Ratio from the following:

Closing Inventory: 3 times of Opening Inventory.

Opening Inventory: 10% of Cost of Revenue from Operations.

Find out the value of Closing Inventory if Closing Inventory is ₹ 16,000 more than the Opening Inventory.

Calculate the value of Opening and Closing Inventory in each of the following alternative cases:

Case I: If closing inventory was ₹ 1,00,000 in excess of opening inventory.

Case II: If closing inventory was 2 times that in the beginning.

Case III: If closing inventory was 2 times more than that in the beginning.

Case IV: If closing inventory was 3 times that in the beginning.

Find out the value of opening inventory and closing inventory if closing inventory is 80% of opening inventory.

₹ 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold). Inventory Turnover Ratio 8 times; Inventory in the beginning is 2 times more than the inventory at the end. Calculate value of Opening and Closing Inventories.

₹ 1,50,000 is the cost of Revenue from Operations (Cost of Goods Sold), Inventory turnover 8 times; Inventory at the beginning is 1.5 times more than the inventory at the end. Calculate the values of Opening & Closing Inventory.

Average Inventory carried by a trader is ₹ 60,000; Inventory turnover ratio is 10 times. Goods are sold at a profit of 10% on cost. Find out the profit.

Determine the amount of Revenue from Operations from the following particulars:

Gross Profit 20% of Revenue from Operations (Sales)

You are informed that closing inventory is two times in comparison to opening inventory.

A Company had a liquid ratio of 1.6 : 1 and a current ratio of 2.4 : 1. Its inventory turnover ratio was 5 times. It had total current liabilities of ₹ 1,50,000.

Find out revenue from operations if the goods are sold at 40% profit on cost.

A company’s inventory turnover is 5 times. Inventory at the end of the year is ₹ 4,000 more than inventory at the beginning of the year. Revenue from Operations during the year (all credit) were ₹ 3,00,000. Rate of Gross Profit is 25% on cost of Revenue from Operations. Current Liabilities at the end of the year were ₹ 50,000. Quick Ratio is 1 : 1.

Calculate:

1. Cost of Revenue from Operations (Cost of Goods Sold).
2. Opening inventory.
3. Closing inventory.
4. Quick Assets.
5. Current Assets at the end.

Calculate Trade Receivables Turnover Ratio from the following:

Calculate Trade Receivables Turnover Ratio from the following:

Calculate Trade Receivables Turnover Ratio from the following:

Calculate Trade Receivables Turnover Ratio from the following figures:

Calculate Trade Receivables Turnover Ratio from the following information:

Calculate Trade Receivables Turnover Ratio from the following information:

Closing Trade Receivables 25% more than Opening Trade Receivables.

From the following particulars, determine the Opening Trade Receivables:

Credit Revenue from Operations (Credit Sales) of X Ltd. during the year ended 31st March, 2023 were ₹ 5,64,000. If trade receivables turnover ratio is 6 times, calculate trade receivables in the beginning and at the end of the year. Trade Receivables at the end were ₹ 10,000 more than that at the beginning of the year.

A Company made Credit Revenue from Operations (Credit Sales) of ₹ 8,76,000 during the year ended 31st March, 2023. If Trade Receivables Turnover Ratio is 18.25 times calculate:

1. Average Trade Receivables.
2. Closing Trade Receivables, if closing Trade Receivables are three times in comparison to opening Trade Receivables.

Calculate the amount of Opening Trade Receivables and Closing Trade Receivables from the following particulars:

Closing Trade Receivables were 3 times than that in the beginning.

Calculate Closing Trade Receivables from the following information:

Closing Trade Receivables were 1.5 times than that in the beginning.

Following figures have been obtained from the books of Pawan Roadways Ltd:

Calculate the Trade Receivables Turnover Ratio. Also Calculate Inventory Turnover Ratio. Give necessary Comments.

Calculate Trade Payables Turnover Ratio from the following:

Calculate Trade Payables Turnover Ratio from the following information:

Calculate Working Capital Turnover Ratio from the following information:

Calculate Working Capital Turnover Ratio from the following information:

Determine the value of Current Liabilities of Y Ltd. from the following:

Following information is given to you:

Calculate:

1. Revenue from Operations
2. Working Capital
3. Current Assets

Calculate Working Capital Turnover Ratio from the following:

Calculate Working Capital Turnover Ratio from the following particulars:

Following information is available for Maxwin Ltd. Calculate Gross Profit Ratio:

Calculate G.P. ratio from the following:

Calculate G.P. Ratio from the following:

Credit Revenue from Operations were `1/4`th of Total Revenue from Operations. Credit Revenue from Operations were ₹ 1,20,000. Credit Purchases were `1/5`th of Cash Purchases. Credit Purchases were ₹ 40,000. Opening Inventory ₹ 70,000. It was ₹ 20,000 more than Closing Inventory; Carriage ₹ 15,000, Wages ₹ 45,000.

A company earns a gross profit of 25% on cost. Its credit Revenue from Operations are twice its cash Revenue from Operations. If the credit Revenue from Operations are ₹ 8,00,000, calculate the gross profit ratio of the company.

Gross Profit of a Company is 20% of Cost of Revenue from Operations. Its Cash Revenue from Operations are `1/3`rd of its Credit Revenue from Operations. Calculate the G.P. Ratio if the Cash Revenue from Operations are ₹ 3,00,000.

Following information is available for the year ending 31st March, 2023, calculate gross profit ratio:

Average Inventory ₹ 60,000; Inventory Turnover Ratio 5 Times; Revenue from Operations 40% above cost. Calculate Gross Profit Ratio.

Given the following information:

Calculate Gross Profit Ratio and Operating Ratio.

Calculate operating ratio from the following:

Compute Operating Ratio from the following Statement of Profit and Loss of X Ltd. for the year ended 31st March, 2023:

Notes to Accounts:

Calculate cost of Revenue from Operations from the following information:

Calculate (i) Operating Profit Ratio, and (ii) Net Profit Ratio from the following:

Calculate: (I) Gross Profit Ratio; (II) Operating Ratio; (III) Operating Profit Ratio; and (IV) Net Profit Ratio from the following:

Calculate (i) G.P. Ratio, (ii) Operating Ratio, (iii) Operating Profit Ratio, (iv) Inventory Turnover Ratio, and (v) Working Capital Turnover Ratio from the following figures:

Gross Profit ratio of a Company was 25%. Its cash Revenue from Operations were ₹ 5,00,000 and its credit Revenue from Operations were 90% of the total Revenue from Operations. If the indirect expenses of the company were ₹ 1,50,000, calculate its net profit ratio.

Calculate Net Profit Ratio from the following information:

Revenue from Operations ₹ 25,00,000; Operating Ratio 90%; Loss on Sale of Fixed Assets ₹ 25,000; Interest on Long term Borrowings ₹ 30,000; Income from Investments ₹ 40,000.

Calculate the earning per share and price earning ratio from the following data:

X Ltd. submits following information:

Compute

1. Earning Per Share
2. Price Earning Ratio

Calculate the preference dividend paid by Neon Ltd. from the following particulars:

Following is the Balance Sheet of Ganesh Ltd. as at 31st March, 2023:

Notes:

Calculate ‘Return on Capital Employed’.

Calculate Return on Capital Employed from the following:

Net Profit before Tax ₹ 2,50,000

Net Profit after Interest but before Tax ₹ 65,000; Shareholder’s Funds ₹ 3,00,000; 15% Long-Term Debt ₹ 1,00,000. Calculate Return on Investment.

Note: It is assumed that Shareholder's Funds include current year’s profits.

Net Profit after Interest and Tax of M Ltd. was ₹ 1,00,000. Its Current Assets were ₹ 4,00,000 and Current Liabilities were ₹ 2,00,000. Tax rate was 50%. Its Total Assets were ₹ 10,00,000 and 10% Long-term debt was ₹ 4,00,000.
Calculate Return on Investment.

Calculate ‘Return on Capital Employed’ from the following details:

Gross Profit ₹ 2,70,000; Administration Expenses ₹ 60,000; Selling Expenses ₹ 30,000; 12% Long-Term Debts ₹ 2,00,000; Tax Rate 40%; Non-Current Assets ₹ 6,00,000; Current Assets ₹ 2,00,000; and Current Liabilities ₹ 50,000.

Calculate Return on Investment from the following:

Calculate Return on Investment from the following details:

A Company has a loan of ₹ 30,00,000 as part of its capital employed. Interest payable on the loan is 12% and the R.O.I. of the company is 25%. The rate of income tax is 40%. What is the gain to shareholders due to the loan raised by the company?

From the following information, calculate the following ratios:

1. Debt-Equity Ratio
2. Proprietary Ratio
3. Working Capital Turnover Ratio
4. Interest Coverage Ratio

Information:

Current Liabilities of a Company were ₹ 2,00,000 and its Current Ratio was 1.4 : 1. After this, it purchased goods for ₹ 1,20,000 on credit. Calculate the revised Current Ratio.

Current Assets of a Company are ₹ 3,60,000 and its Current ratio is 1.8. Afterwards, it made payment to a Creditor amounting to ₹ 40,000. Calculate the revised current ratio.

The Current Ratio of a Company is 0.8 : 1. State giving reasons which of the following transactions would (i) Improve; (ii) Reduce; (iii) Not change; the Current Ratio:

1. Payment of Trade Payables.
2. Purchase of goods on Credit.
3. Sale of furniture costing ₹ 10,000 at a loss of ₹ 2,000.
4. Sale of goods costing ₹ 15,000 at a profit of ₹ 1,000.
5. Payment of dividend payable.

The Quick Ratio of a Company is 1.5 : 1. State giving reasons which of the following transactions would (i) Improve; (ii) Reduce; (iii) Not change; the Quick Ratio:

1. Payment of Trade Payables.
2. Purchase of goods for Cash.
3. Purchase of goods on Credit.
4. Sale of goods Costing ₹ 50,000 for ₹ 50,000.
5. Sale of goods Costing ₹ 50,000 for ₹ 45,000.
6. Cash received from Trade Receivables.

Current Assets ₹ 5,00,000; Working Capital ₹ 3,00,000. Calculate Current Ratio.

Current Liabilities ₹ 20,000; Working Capital ₹ 80,000. Calculate Current Ratio.

Current Ratio 3 : 1; Current Assets ₹ 60,000 . Calculate Current Liabilities.

Current Ratio 4.2 : 1; Current Liabilities ₹ 2,00,000. Calculate Current Assets.

Quick Ratio 2 : 1; Current Liabilities ₹ 2,00,000; Inventory ₹ 1,60,000. Calculate Current Ratio.

Quick Ratio 1.6 : 1; Liquid Assets ₹ 4,80,000; Inventory ₹ 1,50,000. Calculate Current Ratio.

Quick Ratio 3; Current Assets ₹ 2,50,000; Inventory ₹ 40,000. Calculate Current Liabilities.

Quick Ratio 2.2; Current Liabilities ₹ 40,000; Inventory ₹ 32,000. Calculate Current Assets.

Current Assets ₹ 1,00,000; Inventory ₹ 55,000; Working Capital ₹ 70,000. Calculate Quick Ratio.

Current Liabilities ₹ 80,000; Working Capital ₹ 1,70,000; Inventory ₹ 85,000; Prepaid Expenses ₹ 5,000. Calculate Quick Ratio.

Current Ratio 3 : 1; Working Capital ₹ 4,00,000; Inventory ₹ 2,50,000. Calculate Current Assets, Current Liabilities, Quick Ratio.

Current Ratio 3 : 1; Acid Test Ratio 0.9 : 1; Current Liabilities ₹ 1,20,000. Calculate Current Assets; Liquid Assets and Inventory.

Current Ratio 2.5 : 1; Quick Ratio 1 : 1; Current Assets ₹ 5,00,000. Calculate Current Liabilities; Liquid Assets and Inventory.

Current Ratio 3 : 1; Quick Ratio 1.2 : 1; Working Capital ₹ 1,50,000. Calculate Current Assets, Current Liabilities and Inventory.

The ratio of Current Assets (₹ 9,00,000) to Current Liabilities is 1.5 : 1. The accountant of this firm is interested in maintaining a Current Ratio of 2 : 1 by paying some part of Current Liabilities. You are required to suggest him the amount of Current Liabilities which must be paid for this purpose.

Calculate Current Ratio, Quick Ratio, Debt-Equity Ratio and the Proprietary Ratio from the figures given below:

From the following details, calculate Inventory Turnover Ratio:

From the following details, calculate Inventory Turnover Ratio:

Opening Inventory ₹ 40,000; Closing Inventory ₹ 50,000; Revenue from Operations ₹ 8,00,000; Gross Profit Ratio 20%. Calculate Inventory Turnover Ratio.

Opening Inventory ₹ 29,000; Purchases ₹ 2,42,000; Revenue from Operations ₹ 3,20,000; Gross Profit Ratio is 25% on revenue from operations. Calculate Inventory Turnover ratio.

Closing Inventory ₹ 22,000; Purchases ₹ 1,48,000; Purchase Return ₹ 8,000; Carriage ₹ 4,000; Revenue from Operations (Sales) ₹ 1,90,000; Revenue from Operations Return (Sales Returns) ₹ 10,000; Gross Profit 20% on Cost. Calculate Inventory Turnover Ratio.

Find out the value of opening inventory from the following particulars:

You are informed that closing inventory is ₹ 8,000 more than the opening inventory.

₹ 6,30,000 is the cost of Revenue from Operations of a firm for the year ending 31st March, 2023. If inventory turnover ratio is 7 times, calculate inventory at the end of the year. Inventory at the end is twice than that in the beginning.

Following figures have been extracted from Shivalika Mills Ltd.

Calculate current assets of a company from the following information:

1. Inventory turnover 4 times.
2. Inventory in the end is ₹ 20,000 more than inventory in the beginning.
3. Revenue from Operations ₹ 3,00,000.
4. Gross profit ratio 20%.
5. Current liabilities ₹ 40,000.
6. Quick ratio 0.75.

Following are the details available:

If the closing inventory is more by ₹ 4,000 than opening inventory, determine the following:

1. Opening Inventory
2. Liquid Ratio

From the following information, calculate trade receivables turn over ratio:

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., 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.]

Opening Trade Receivables ₹ 3,60,000; Cash Revenue from Operations being 20% of Credit Revenue from Operations. Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 60,000. Cost of Revenue from Operations ₹ 18,00,000; Gross Profit ₹ 5,40,000. Calculate Trade Receivables Turnover Ratio.

Opening Trade Receivables ₹ 10,000; Total Revenue from Operations (Total Sales) ₹ 4,00,000; Cash Revenue from Operations being `2/5`th of Total Revenue from Operations; Revenue from Operations Return (Sales Returns) ₹ 60,000 (`1/3`rd out of Cash Revenue from Operations); Closing Trade Receivables were four times than that in the beginning. Calculate Trade Receivables Turnover Ratio.

Calculate amount of Opening Trade Receivables and Closing Trade Receivables from the following figures:

Closing Trade Receivables were ₹ 40,000 more than in the beginning. Cash sales being `1/4` times of Credit Sales.

Calculate the amount of Opening Trade Receivables and Closing Trade Receivables from the following:

You are informed that Closing Trade Receivables were three times than that in the beginning. Cash Revenue from Operations being 25% of Credit Revenue from Operations.

Calculate G.P. Ratio from the following:

Calculate Gross Profit Ratio from the following data:

Calculate G.P. Ratio from the following:

Cash Revenue from Operations are `1/3`rd of total Revenue from Operations; Cash Revenue from Operations were ₹ 6,00,000; Credit Purchases are 25% of total purchases; Credit Purchases were ₹ 3,00,000; Opening Inventory ₹ 1,00,000; Closing Inventory was ₹ 50,000 more than Opening Inventory; Carriage ₹ 15,000; Wages ₹ 35,000.

From the following informations calculate:

1. Current Ratio
2. Quick Ratio
3. Operating Ratio
4. Gross Profit Ratio

Calculate the Gross Profit Ratio (up to two decimal places) from the following information:

A trader carries an average inventory of ₹ 40,000. His inventory turnover Ratio is 8 times. If he sells goods at a profit of 20% on Revenue from Operations, find out his profit.

From the following data, calculate:

1. Gross Profit Ratio
2. Operating Ratio
3. Net Profit Ratio
4. Inventory turnover Ratio
5. Current Ratio

From the following data, calculate:

1. Gross Profit Ratio
2. Net Profit Ratio
3. Working Capital Turnover Ratio
4. Debt-Equity Ratio
5. Proprietary Ratio

The following information is given about a company:

From the above information, calculate the following ratios:

1. Gross Profit Ratio
2. Operating Ratio
3. Inventory Turnover Ratio
4. Trade Receivables Turnover Ratio

With the help of the given information, calculate the following ratios:

1. Operating ratio
2. Quick ratio
3. Working capital turnover ratio
4. 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.

From the following information:

Calculate the following:

1. Operating ratio
2. Inventory turnover ratio
3. Net Profit Ratio
4. Liquid Ratio

On the basis of information given below, calculate the following ratios:

1. Gross Profit Ratio
2. Debt-Equity Ratio
3. Working Capital Turnover Ratio

Information:

On the basis of the following information, calculate the following ratios:

1. Operating Ratio
2. Liquid Ratio
3. Proprietary Ratio

Information:

Cash Revenue from Operations ₹ 4,00,000; Credit Revenue from Operations ₹ 2,75,000; Revenue from Operations Returns (Sales Returns) ₹ 27,000; Cost of Revenue from Operations ₹ 3,90,000; Selling and Distribution Expenses ₹ 7,000; Administration Expenses ₹ 3,000; Current Liabilities ₹ 1,95,000; Current Assets ₹ 3,94,000; Closing Inventory ₹ 23,000; Equity Share Capital ₹ 4,37,000; 6% Preference Share Capital ₹ 1,74,000; Non-Current Assets ₹ 4,30,000.

From the following information, calculate any two of the following ratios:

From the following information, calculate the following ratios:

1. Operating Ratio
2. Inventory Turnover Ratio
3. Proprietary Ratio

Information:

From the following information, calculate the following ratios:

1. Liquid Ratio
2. Gross Profit Ratio
3. Debt-Equity Ratio

Information:

From the given information, calculate the following ratios:

1. Debt-Equity Ratio
2. Debt to Total Assets Ratio
3. Operating Ratio
4. Trade Receivables Turnover Ratio
5. Trade Payables Turnover Ratio

How will you assess the liquidity of a business?

Calculate Gross Profit Ratio from the following information:

Cash Revenue from Operations is `1/4`th of the total Revenue from Operations.
Cash Revenue from Operations were ₹ 8,00,000.
Credit Purchases are `1/5`th of the total purchases.
Credit Purchases were ₹ 3,00,000.
Opening Inventory ₹ 1,00,000.
Closing Inventory was ₹ 40,000 more than the Opening Inventory.
Wages ₹ 30,000
Carriage outward ₹ 16,000

The following data is available from the records of Johnson and Company Limited:

Calculate the following (up to two decimal places):

1. Current Ratio
2. Quick Ratio
3. Earning Per Share

From the following information, calculate (upto two decimal places):

1. Gross Profit Ratio
2. Operating Ratio

Calculate ‘Return on Investment’ and ‘Debt to Equity Ratio’ from the following information:

From the following information obtained from the books of Kamal Ltd.,
Calculate:

1. Gross Profit Ratio
2. Net Profit Ratio

From the following information calculate the following ratios (up to two decimal places):

1. Earning per share
2. Price Earning Ratio
3. Return on Investments
4. Working Capital Turnover Ratio

Note: The market value of an equity share is ₹ 40.

From the following information, calculate the Return on Investment:

From the following information, calculate the following ratios (up to two decimal places):

1. Debt to Total Assets Ratio
2. Proprietary Ratio
3. Inventory Turnover Ratio

From the following Statement of Profit & Loss of Swatantra Ltd. for the year 2020-21, calculate any three ratios (up to two decimal places).

1. Gross Profit Ratio
2. Net Profit Ratio
3. Operating Profit Ratio
4. Inventory Turnover Ratio

Notes to Accounts:

Two basic measures of liquidity are ______.

Current Ratio is ______.

Liquid Assets do not includes ______.

Ideal Current Ratio is ______.

Working Capital is the ______.

Current assets include only those assets which are expected to be realised within ______.

The ______ of a business firm is measured by its ability to satisfy its short-term obligations as they become due.

Ideal quick ratio is ______.

Quick assets do not include ______.

Current assets do not include ______.

______ is also known as the acid test ratio.

Liquid assets include ______.

Patents and copyrights fall under the category of ______.

Trade Receivables ₹ 40,000; Trade Payables ₹ 60,000; Prepaid Expenses ₹ 10,000; Inventory ₹ 1,00,000 and Goodwill is ₹ 15,000. Current Ratio will be ______.

Cash Balance ₹ 5,000; Trade Payables ₹ 40,000; Inventory ₹ 50,000; Trade Receivables ₹ 65,000 and Prepaid Expenses are ₹ 10,000. Liquid Ratio will be ______.

Current Assets ₹ 4,00,000; Current Liabilities ₹ 2,00,000 and Inventory is ₹ 50,000. Liquid Ratio will be ______.

Assuming Current Ratio of 1.4 : 1, Which of the following transactions will improve the Current Ratio?

Assuming quick ratio of 1.2 : 1, Which of the following transactions will improve the quick ratio?

A company’s current ratio is 2 : 1. After cash payment to some of its creditors, current ratio will ______.

A Company’s Current Assets are ₹ 8,00,000 and its current liabilities are ₹ 4,00,000. Subsequently, it purchased goods for ₹ 1,00,000 on credit. Current ratio will be ______.

A company’s Current assets are ₹ 3,00,000 and its current liabilities are ₹ 2,00,000. Subsequently, it paid ₹ 50,000 to its trade payables. Current ratio will be ______.

Current Assets of a Company were ₹ 1,00,000 and its current ratio was 2 : 1. After this the company paid ₹ 25,000 to a Trade Payable. The Current Ratio after the payment will be ______.

Current liabilities of a company were ₹ 2,00,000 and its current ratio was 2.5 : 1. After this the company paid ₹ 1,00,000 to a trade payable. The current ratio after the payment will be ______.

A Company’s liquid assets are ₹ 10,00,000 and its current liabilities are ₹ 8,00,000. Subsequently, it purchased goods for ₹ 1,00,000 on credit. Quick ratio will be ______.

A Company’s liquid assets are ₹ 5,00,000 and its current liabilities are ₹ 3,00,000. Thereafter, it paid ₹ 1,00,000 to its trade payables. Quick ratio will be ______.

The ______ is a measure of liquidity which excludes ______, generally the least liquid asset.

Assuming that the current ratio is 2 : 1, purchase of goods on credit would ______.

Assuming that the current ratio is 2 : 1, cash paid against bills payable would ______.

Quick ratio of Megamart Ltd. is 1.5 : 1. Which of the following transactions will result in decrease in this ratio? 

Liquid assets:

A Company’s Quick Ratio is 1.5 : 1; Current Liabilities are ₹ 2,00,000 and Inventory is ₹1,80,000. Current Ratio will be ______.

A Company’s Quick Ratio is 1.8 : 1; Liquid Assets are ₹ 5,40,000 and Inventory is ₹ 1,50,000. Its Current Ratio will be ______.

A Company’s Current Ratio is 2.8 : 1; Current Liabilities are ₹ 2,00,000; Inventory is ₹ 1,50,000 and Prepaid Expenses are ₹ 10,000. Its Liquid Ratio will be ______.

The Quick Ratio of a company is 1 : 2. Which of the following transactions will result in an increase in this ratio?

On the basis of following data, the liquid ratio of a company will be:

Current Ratio 5 : 3; Current Liabilities ₹ 75,000 and Inventory ₹ 25,000

A firm’s current ratio is 3.5 : 2. Its current liabilities are ₹ 80,000. Its working capital will be ______.

A Company’s Current Ratio is 3 : 1 and Liquid Ratio is 1.2 : 1. If its Current Liabilities are ₹ 2,00,000, what will be the value of inventory?

When Current Ratio is 4 : 1, Current Assets are ₹ 60,000 and Quick Ratio is 2.5 : 1, the amount of 'Inventory' will be ______.

Current Ratio of a Company is 2.5 : 1. If its working capital is ₹ 60,000, its current liabilities will be ______.

A Company’s Current Assets are ₹ 6,00,000 and working capital is ₹ 2,00,000. Its Current Ratio will be ______.

A Company’s Current Ratio is 2.4 : 1 and Working Capital is ₹ 5,60,000. If its Liquid Ratio is 1.5, what will be the value of Inventory?

A Company’s Current Ratio is 2.5 : 1 and its Working Capital is ₹ 60,000. If its Inventory is ₹ 52,000, what will be the liquid Ratio?

The Current Ratio of a company is 1.8 : 1 and its Quick Ratio is 1.6 : 1.

From the following transactions, pick out the transaction which involves an increase in both the Current Ratio and Quick Ratio:

Current Ratio of Super Ltd. is 2 : 1. Which of the following transactions will result in decrease in this ratio?

Debentures ₹ 80,000, Trade Payables ₹ 1,20,000, Trade Receivables ₹ 90,000, Prepaid Expenses ₹ 10,000, Inventory ₹ 2,00,000 and Goodwill is ₹ 60,000. Current Ratio will be ______.

Current ratio of Adaar Ltd. is 2.5 : 1. Accountant wants to maintain it at 2 : 1. Following options are available.

1. He can repay Bills Payable.
2. He can purchase goods on credit.
3. He can take short term loan.

Choose the correct option.

Which ratio indicates the proportion of assets financed out of shareholders’ funds?

Long term solvency is indicated by ______.

Debt equity ratio is ______.

Debt equity ratio is ______.

Proprietary ratio is ______.

Non-Current Assets ₹ 5,00,000; Current Assets ₹ 3,00,000; Equity Share Capital ₹ 4,00,000; Reserve ₹ 2,00,000; Long-term Debts ₹ 40,000. Proprietary Ratio will be ______.

______ ratios are calculated to determine the ability of the business to service its debt in the long run.

If Debt equity ratio exceeds ______, it indicates risky financial position.

In debt equity ratio, debt refers to ______.

Proprietary ratio indicates the relationship between proprietor’s funds and ______.

The formula for calculating the Debt Equity Ratio is:

Equity Share Capital ₹ 20,00,000; Reserve ₹ 5,00,000; Debentures ₹ 10,00,000; Current Liabilities ₹ 8,00,000. Debt-equity ratio will be ______.

Debt equity ratio of a company is 1 : 2. Which of the following transactions will increase it?

Satisfactory ratio between long-term debts and shareholder’s funds is ______.

On the basis of following data, the proprietary ratio of a Company will be:

Equity Share Capital ₹ 6,00,000; Debentures ₹ 2,40,000; Statement of Profit & Loss Debit Balance ₹ 40,000.

On the basis of following information received from a firm, its Proprietary Ratio will be:

Non-Current Assets ₹ 3,30,000; Current Assets ₹ 1,90,000; Preliminary Expenses ₹ 30,000; Equity Share Capital ₹ 2,44,000; Preference Share Capital ₹ 1,70,000; Reserve Fund ₹ 58,000.

On the basis of following data, a Company’s Total Assets-Debt Ratio will be:

Working Capital ₹ 4,50,000; Current Liabilities ₹ 1,50,000; Non-Current Assets ₹ 4,00,000; Debentures ₹ 2,00,000; Long Term Bank Loan ₹ 50,000.

On the basis of following information received from a firm, its Total Assets-Debt Ratio will be:

Shareholder’s Funds ₹ 2,00,000; Dr. Balance of Profit & Loss ₹ 50,000; Current Liabilities ₹ 1,00,000; Current Assets ₹ 2,00,000; Total Assets ₹ 6,00,000.

Ratios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources are known as ______.

Inventory turnover ratio is ______.

Opening Inventory ₹ 1,00,000; Closing Inventory ₹ 1,50,000; Purchases ₹ 6,00,000; Carriage ₹ 25,000; Wages ₹ 2,00,000. Inventory Turnover Ratio will be ______.

Revenue from Operations ₹ 8,00,000; Gross Profit Ratio 25%; Opening Inventory ₹ 1,00,000; Closing Inventory ₹ 60,000. Inventory Turnover Ratio will be ______.

On the basis of following data, the cost of revenue from operations by a company will be:

Opening Inventory ₹ 70,000; Closing Inventory ₹ 80,000; Inventory Turnover Ratio 6 Times.

Opening Inventory of a firm is ₹ 80,000. Cost of revenue from operations is ₹ 6,00,000. Inventory Turnover Ratio is 5 times. Its closing inventory will be ______.

Cost of revenue from operations ₹ 6,00,000; Inventory Turnover Ratio 5; Find out the value of opening inventory, if opening inventory is ₹ 8,000 less than the closing inventory.

Revenue from Operations ₹ 2,00,000; Inventory Turnover Ratio 5; Gross Profit 25%. Find out the value of Closing Inventory, if Closing Inventory is ₹ 8,000 more than the Opening Inventory.

If average inventory is ₹ 50,000 and closing inventory is ₹ 2,000 less than the opening inventory, opening and closing inventory will be ______.

Average Inventory ₹ 60,000; Inventory Turnover Ratio 8; Gross Profit 20% on revenue from operations; what will be Gross Profit?

Opening Inventory ₹ 75,000; Closing Inventory ₹ 1,05,000; Inventory Turnover Ratio 6; Gross Profit 20% on cost; what will be Gross Profit?

What will be the amount of gross profit of a firm if its average inventory is ₹ 80,000, Inventory turnover ratio is 6 times, and the Selling price is 25% above cost?

Opening Inventory ₹ 40,000; Purchase ₹ 4,00,000; Purchase Return ₹ 12,000, what will be Inventory turnover ratio if Closing Inventory is less than Opening Inventory by ₹ 8,000?

Total Revenue from Operations ₹ 27,00,000; Credit Revenue from Operations ₹ 18,00,000; Opening Debtors ₹ 3,20,000; Closing Debtors ₹ 4,00,000; Provision for Doubtful Debts ₹ 60,000. Trade Receivables Turnover Ratio will be ______.

If Total sales is ₹ 2,50,000 and credit sales is 25% of Cash sales. The amount of credit sales is ______.

From the following particulars of Zee Ltd., the Trade Receivables Turnover Ratio of the company will be:

A firm makes Credit Revenue from Operations of ₹ 2,40,000 during the year. If the Trade Receivables Turnover Ratio is 8 times, calculate Closing Debtors if the Closing Debtors are more by ₹ 6,000 than the Opening Debtors.

Credit Revenue from Operations ₹ 3,00,000. Trade Receivables Turnover Ratio 5; Calculate Closing Debtors if Closing Debtors are two times in comparison to Opening Debtors.

Credit Purchases ₹ 6,00,000; Trade Payables Turnover Ratio 5; Calculate Closing Creditors, if Closing Creditors are ₹ 10,000 less than Opening Creditors.

On the basis of following data, the Working Capital Turnover Ratio of a company will be:

Liquid Assets ₹ 3,70,000; Inventory ₹ 80,000; Current Liabilities ₹ 1,50,000; Cost of revenue from operations ₹ 7,50,000.

A firm’s current assets are ₹ 3,60,000; current ratio is 3 : 1. Cost of revenue from operations is ₹ 12,00,000. Its working capital turnover ratio will be ______.

Opening Inventory ₹ 1,00,000; Closing Inventory ₹ 1,20,000; Purchases ₹ 20,00,000; Wages ₹ 2,40,000; Carriage Inwards ₹ 1,50,000; Selling Exp. ₹ 60,000; Revenue from Operations ₹ 30,00,000. Gross Profit ratio will be ______.

Cash Revenue from Operations ₹ 4,00,000; Credit Revenue from Operations ₹ 21,00,000; Revenue from Operations Return ₹ 1,00,000; Cost of revenue from operations ₹ 19,20,000. G.P. ratio will be ______.

On the basis of following data, a Company’s Gross Profit Ratio will be:

Net Profit ₹ 40,000; Office Expenses ₹ 20,000; Selling Expenses ₹ 36,000; Total Revenue from Operations ₹ 6,00,000.

What will be the amount of Gross Profit, if Revenue from Operations are ₹ 6,00,000 and Gross Profit Ratio is 20% of cost?

What will be the amount of Gross Profit, if Revenue from Operations are ₹ 6,00,000 and Gross Profit Ratio 20% of Revenue from Operations?

Revenue from Operations is ₹ 1,80,000; Rate of Gross Profit is 25% on cost. What will be the Gross Profit?

Operating ratio is ______.

Cost of Revenue from Operations =

Purchases ₹ 7,20,000; Office Expenses ₹ 30,000; Selling Expenses ₹ 90,000; Opening Inventory ₹ 1,40,000; Closing Inventory ₹ 80,000; Revenue from Operations ₹ 12,00,000. Calculate Operating Ratio.

Revenue from Operations ₹ 6,00,000 ; Gross Profit 20%; Office Expenses ₹ 30,000; Selling Expenses ₹ 48,000. Calculate Operating Ratio.