Calculate the following ratio on the basis of following information-i Gross Profit Ratio ii Current Ratio iii Acid Test Ratio iv Inventory Turnover Ratio v Fixed Assets Turnover Ratio 1c Rs- Gross Profit 50-000 Revenue from Operations 1-00-000 Inventory 15-000 Trade Receivables 27-500 Cash and Cash Equivalents 17-500 Current Liabilities 40-000 Land - Building 50-000 Plant - Machinery 30-000 Furniture 20-000 1-2

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Standard XII

Accountancy

Inventory Turnover Ratio

Calculate the...

Question

Calculate the following ratio on the basis of following information:
(i) Gross Profit Ratio (ii) Current Ratio (iii) Acid Test Ratio (iv) Inventory Turnover Ratio (v) Fixed Assets Turnover Ratio

Rs.

Gross Profit 50,000

Revenue from Operations 1,00,000

Inventory 15,000

Trade Receivables 27,500

Cash and Cash Equivalents 17,500

Current Liabilities 40,000

Land & Building 50,000

Plant & Machinery 30,000

Furniture 20,000

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Solution

(i)

(ii)

(iii)

(iv)

Average Inventory = 15,000*

*Note: Since values for inventory in the beginning and inventory at the end is not given, the amount of inventory is assumed to be average inventory.

(v)

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The following is the summerised transactions and Statement of Profit and Loss Account for the year ending March 31, 2007 and the Balance Sheet as on the basis of following information, calculate:

(i) Gross Profit Ratio (ii) Current Ratio (iii) Acid Test Ratio (iv) Inventory Turnover Ratio (v) Fixed Assets Turnover Ratio

	Rs.
Gross Profit	50,000
Revenue from Operations	1,00,000
Inventory	15,000
Trade Receivables	27,500
Cash and Cash Equivalents	17,500
Current Liabilities	40,000
Land & Building	50,000
Plant & Machinery	30,000
Furniture	20,000

Q. Calculate following ratios on the basis of the following information:
(i) Gross Profit Ratio;
(ii) Current Ratio;
(iii) Acid Test Ratio; and
(iv) Inventory Turnover Ratio.

	₹		₹
Gross Profit	50,000	Revenue from Operations	1,00,000
Inventory	15,000	Trade Receivables	27,500
Cash and Cash Equivalents	17,500	Current Liabilities	40,000

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:

	Rs
Revenue from Operations	25,20,000
Net Profit	3,60,000
Cast of Revenue from Operations	19,20,000
Long-term Debts	9,00,000
Trade Payables	2,00,000
Average Inventory	8,00,000
Current Assets	7,60,000
Fixed Assets	14,40,000
Current Liabilities	6,00,000
Net Profit before Interest and Tax	8,00,000

From the following information calculate Gross Profit Ratio, Inventory Turnover Ratio and Trade Receivables Turnover Ratio.

	Rs
Revenue from Operations	3,00,000
Cost of Revenue from Operations	2,40,000
Inventory at the end	62,000
Gross Profit	60,000
Inventory in the beginning	58,000
Trade Receivables	32,000

Calculate following ratios from the following information:

(i) Current ratio (ii) Acid test ratio (iii) Operating Ratio (iv) Gross Profit Ratio

	Rs
Current Assets	35,000
Current Liabilities	17,500
Inventory	15,000
Operating Expenses	20,000
Revenue from Operations	60,000
Cost of Goods Sold	30,000

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(i) (ii) (iii) (iv) Average Inventory = 15,000* *Note: Since values for inventory in the beginning and inventory at the end is not given, the amount of inventory is assumed to be average inventory. (v)

(i)

(ii)

(iii)

(iv)

Average Inventory = 15,000*

*Note: Since values for inventory in the beginning and inventory at the end is not given, the amount of inventory is assumed to be average inventory.

(v)