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Ratios Test

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kunu8333
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28 views

Ratios Test

Uploaded by

kunu8333
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PART A

1. A company had Current Assets ₹ 3,00,000 and Current Liabilities ₹ 1,40,000. Afterwards , it
purchased goods worth ₹20,000 on credit. Calculate the Current Ratio after the purchase of goods. [2]
2. From the following compute Proprietary Ratio: [3]
Long Term Borrowings 2,00,000
Long Term Provisions, 1,00,000
Current Liabilities 50,000
Non- Current Assets 3,60,000
Current Assets 90,000
3. From the following calculate Interest Coverage Ratio: [1]
Net profit after tax ₹ 12,00,000; 10% debentures ₹ 1,00,00,000; tax rate 40%
(a) 1.2 times (c ) 3 times
(b) 2 times (d) 5 times

4 If revenue from operations is ₹ 9,00,000; gross profit is 25% on cost and operating expenses are
₹ 90,000, the operating ratio will be: [1]
(a) 100% (c ) 50%
(b) 90% (d) 10%
5. The ‘ Inventory Turnover Ratio’ from the following information will be : [1]
Revenue from operations ₹ 12,00,000
Average Inventory ₹2,00,000
Gross Loss Ratio 20%
(a) 6 times (c ) 5 times
(b) 7.2 times (d) 3 times
6. Ratio of Current Assets(₹ 3,00,000) to Current Liabilities (₹2,00,000) is 1.5:1. 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 amount of current liabilities that should be paid so that the Current Ratio at the level of 2:1
may be maintained. [4]

7.Calculate opening and Closing Trade Receivables from the following information: [4]
Trade Receivables Turnover Ratio 4 times ; Cost of Revenue from Operations ₹3,20,000
Gross Profit Ratio 20% , Closing Trade receivables were ₹ 15,000 more than opening trade
Receivables ; Cash Revenue from operations being 33.33% of Credit Revenue from operations.

1
8.(a) Net profit after interest and tax ₹ 1,00,000; Current assets ₹4,00,000 ; Current liabilities ₹ 2,00,000
Tax rate 20%; Fixed Assets ₹6,00,000; 10% Long term debt ₹ 4,00,000. [4]
Calculate Return on Investment
(b) Rate of Gross profit on cost of a company is 25%. Its Gross Profit is ₹ 5,00,000. Its Shareholders’
Funds are ₹ 12,00,000; Current Liabilities are ₹3,00,000 and Current Assets are ₹10,00,000.
Calculate its Working Capital Turnover Ratio.

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