Ratio 60

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

Ratio 59

(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

Ratio 57

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

Ratio 56

Calculate Gross Profit Ratio from the following information: Average Inventory ₹1,60,000; Inventory Turnover Ratio 8 times, Average Trade Receivables ₹2,00,000; Trade Receivables Turnover Ratio 6 times and Cash Sales 25% of Total Sales. Marks-4, CBSE:2022-23/Zone-3/Set-1/Q-33* Answer : Next Back

Ratio 54

The debt equity ratio of M Ltd. is 2:1. State with reasons whether the following transactions will increase, decrease or not change the debt equity ratio: (i) Obtained a loan from 1CICI Bank ₹1,00,000 payable after 5 yrs. (ii) Purchased machinery for cash ₹1,50,000. (ii) Redeemed 9% debentures ₹1,00,000, (iv) Issued equity shares for purchase … Read more

Ratio 53

(i) Calculate Revenue from operations of BN Ltd.’ from the following information: Current Assets     ₹8,00,000 Quick ratio     1.5 : 1 Current ratio     2 : 1 Inventory turnover ratio    6 times Goods were sold at a profit of 25% on cost. (ii) The operating ratio of a company is 60%.  State whether … Read more

Ratio 52

From the following information, calculate ‘Interest Coverage Ratio. Profit after interest and tax     ₹7,50,000 Rate of income tax      25% 9 % Debentures     ₹8,00,000 Marks-3, CBSE:2020-21/Sample/Q-30* Answer : Next Back

Ratio 51

Calculate proprietary ratio, if Total assets to Debt ratio is 2:1. Debt is ₹5,00,000. Equity shares capital is 0.5 times of debt. Preference Shares capital is 25% of equity share capital. Net profit before tax is ₹10,00,000 and rate of tax is 40%. Marks-3, CBSE:2020-21/Sample/Q-30* Answer : Next Back

Ratio 50

(i) X Ltd. has a current ratio of 3 : 1 and quick ratio of 2 : 1. The excess of current assets over quick assets are ₹24,000. Calculate current assets and current liabilities. (ii) From the following information, compute ‘Total Assets to Debt Ratio’: Marks-3, CBSE:2019-20/Compartment/Q-30* Answer : Next Back

Ratio 40

40. Calculate opening and closing trade receivables from the following information: Trade Receivable turnover ratio 4 times; Cost of Revenue from Operations Rs.  3,20,000; Gross profit ratio 20%; Closing trade receivables were Rs.  15,000 more than opening trade receivables; cash revenue from operations being 33⅓ % of credit revenue from operations. Marks-4, CBSE:2018-19/Main/03/Q-21* Answer Next … Read more

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