The Current Ratio of Zenith Ltd. is 2 : 1. State giving reasons, which of the following transactions will improve, reduce or not change the current ratio: Payment to creditors ₹20,000 Purchased goods on credit ₹80,000 Cash received from debtors ₹15,000 Issue of Equity Shares ₹5,00,000 Marks-4, CBSE:2022-23/Compartment/Q-33* Answer : Next Back
(i)From the following information, calculate Operating Ratio: Revenue from Operations : ₹10,00,000 Cost of Revenue from Operations : ₹4,00,000 Selling expenses : ₹80,000 Administrative expenses : ₹1,20,000 (ii)From the following details, calculate Interest Coverage Ratio: Net Profit before Tax : ₹2,00,000 10% Long term debt : ₹5,00,000 Tax rate 40% Marks-4, CBSE:2022-23/Compartment/Q-33* Answer : Next … Read more
These ratios are calculated to determine the ability of the business to service its debt in the long run. Identify and state the significance of three such ratios. Marks-3, CBSE:2022-23/Compartment/Q-32 Answer : Next Back
Debt to Capital Employed ratio is 0.3:1. State whether the following transactions, will improve, decline or will have no change on the Debt to Capital Employed Ratio. Also give reasons for the same. Sale of Equipments costing ₹10,00,000 for ₹9,00,000. Purchased Goods on Credit for ₹1,00,000 for a credit of 15 months, assuming operating cycle … Read more
Determine Return on Investment and Net Assets Turnover ratio from the following information: – Profits after Tax were ₹6,00,000; Tax rate was 40%; 15% Debentures were of ₹20,00,000; 10% Bank Loan was ₹20,00,000; 12% Preference Share Capital ₹30,00,000; Equity Share Capital ₹40,00,000; Reserves and Surplus were ₹10,00,000; Sales ₹3,75,00,000 and Sales Return ₹15,00,000. Marks-4, CBSE:2022-23/Sample/Q-33* … Read more
The Current Ratio of a company is 2 : 1. State giving reasons, which of the following transactions would improve, reduce or not change the ratio: (a) Purchased goods on credit ₹40,000 (b) Sale of furniture of ₹8,000 at a loss of ₹2,000 (c) Cash received from trade receivables ₹15,000 (d) Issued equity shares ₹6,00,000 … Read more
Calculate Gross Profit Ratio from the following information: Inventory Turnover Ratio: 6 times Average Inventory: ₹4,00,000 Goods are sold at a profit of 25% on cost Marks-4, CBSE:2022-23/Zone-1/Set-1/Q-33* Answer : Next Back
a) A company had a liquid ratio of 1.5 and current ratio of 2 and inventory turnover ratio 6 times. It had total current assets of ₹8,00,000. Find out annual sales if goods are sold at 25% profit on cost. b) Calculate debt to capital employed ratio from the following information. Shareholder funds ₹ 15,00,000 … Read more
Debt-Equity Ratio of Z Ltd. is 2: 1. State with reason whether the following transactions will improve, decline or will not change the debt-equity ratio: (i) Conversion of 3,00,000, 9% debentures into equity shares. (ii) Cash received from debtors ₹1,00,000 (iii) Redemption of 10,00,000, 11% debentures. (iv) Purchase of goods on credit ₹4,00,000. Marks-4, CBSE:2022-23/Zone-5/Set-1/Q-33* … Read more
From the following information, calculate the value of opening and closing inventory: Inventory Turnover Ratio = 4 times Gross Profit = 20% on Revenue from operations Revenue from operations = ₹10,00,000 Opening inventory is 25% of the inventory at the end. Marks-4, CBSE:2022-23/Zone-5/Set-1/Q-33* Answer : Next Back