(a) From the following information calculate (up to two decimal places):
(i) Gross Profit Ratio
(ii) Inventory Turnover Ratio
(iii) Net Profit Ratio
Cash Revenue from Operations — Rs 70,000
Net Purchases — Rs 2,97,000
Credit Revenue from Operations — Rs 2,80,000
Closing Inventory — Rs 80,000
Opening Inventory — Rs 60,000
Carriage inward — Rs 3,000
Selling expenses — Rs 5,000
Administrative expenses — Rs 40,000
Loss on sale of fixed asset — Rs 10,000
Dividend received — Rs 7,000
(b) The Current Ratio of a company is 2 : 1. State whether the following will increase, reduce or not change the ratio .
(i) Bills Payable ? 5,000 discharged.
(ii) Purchase of inventory Rs 20,000 on credit.
(c) Give the formulae for calculating :
(i) Earning per share
(ii) Trade Payables Turnover Ratio