Question

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

Answer 1

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.