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
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) Purchase of goods for cash ₹60,000 (b) Purchase of fixed assets for cash ₹2,00,000 (c) Sale of goods costing ₹20,000 for ₹23,000 on credit (d) Issue of shares … Read more
(a) Y Ltd. has a Current Ratio of 3.5 : 1 and Quick Ratio of 2 : 1. If excess of current assets over quick assets represented by inventory is ₹48,000, calculate current assets and current liabilities. (b) Calculate Debt to Equity Ratio: Shareholder Funds ₹2,00,000 Reserves and Surplus ₹1,00,000 Total Debt … Read more
From the following information, calculate Working Capital Turnover Ratio: Capital Employed ₹1,00,000 Non-Current Assets ₹80,000 Cost of Revenue from Operations ₹3,20,000 Gross Profit Ratio 20% Marks-4, CBSE:2022-23/Zone-3/Set-1/Q-33* Answer : Next Back