LIVE Course for free

Rated by 1 million+ students
Get app now
0 votes
8.4k views
in Accounts by (64.3k points)

From the following information calculate 

(i) Gross Profit Ratio 

(ii) Inventory Turnover Ratio 

(iii) Current Ratio 

(iv) Liquid Ratio 

(v) Net Profit Ratio 

(vi) Working Capital Ratio

Items Rs.
sales 25,20,000
Net profit 3,60,000
cost of sales 19,20,000
long terms debts 9,00,000
creditors 2,00,000
Average inventory 8,00,000
current assets 7,60,000
fixed assets 14,40,000
currect liabilities 6,00,000
Net profit before insterest and tax 8,00,000

1 Answer

0 votes
by (106k points)
selected by
 
Best answer

Note :In this question stock is given separately from current assets, hence* it is added to make total current assets.

Note :In this question current assetts should be considered as other current asset and stock is separate, in other words, other current assets means liquid assets. Working capital ratio and working capital turnover ratio means same.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...