From the following information, calculate the following ratios:

i) Quick Ratio

ii) Inventory Turnover Ratio

iii) Return on Investment

Rs.

Inventory in the beginning 50,000

Inventory at the end 60,000

Revenue from operations 4,00,000

Gross Profit 1,94,000

Cash and Cash Equivalents 40,000

Trade Receivables 1,00,000

Trade Payables 1,90,000

Other Current Liabilities 70,000

Share Capital 2,00,000

Reserves and Surplus 1,40,000

(Balance in the Statement of Profit & Loss A/c)

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Solution

(i)

(ii)

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The following Balance Sheet and other information, calculate following ratios:

(i) Debt-Equity Ratio (ii) Working Capital Turnover Ratio (iii) Trade Receivables Turnover Ratio

Balance Sheet as at March 31, 2017
Particulars	Note No.	Rs.
I. Equity and Liabilities:
1. Shareholders’ funds
a) Share capital		10,00,000
b) Reserves and surplus		9,00,000
2. Non-current Liabilities
a) Long-term borrowings		12,00,000
3. Current Liabilities
a) Trade payables		5,00,000
Total		36,00,000
II. Assets
1. Non-current Assets
a) Fixed assets
Tangible assets		18,00,000
2. Current Assets
a) Inventories		4,00,000
b) Trade Receivables		9,00,000
c) Cash and cash equivalents		5,00,000
Total		36,00,000

Additional Information: Revenue from Operations Rs. 18,00,000 Calculate:

i) Debt-Equity Ratio

ii) Working Capital Turnover Ratio

iii) Trade Receivables Turnover Ratio

(Debt-Equity Ratio 0.63:1; Working Capital Turnover Ratio 1.39 times; Trade Receivables Turnover Ratio 2 times)

Q. 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

$\begin{matrix} Items & Rs. Sales & 25, 20, 000 Net Profit & 3, 60, 000 Cost of Sales & 19, 20, 000 Long term Debts & 9, 00, 000 Creditors & 2, 00, 000 Average Inventory & 8, 00, 000 Current Assets & 7, 60, 000 Fixed Assets & 14, 40, 000 Current Liabillities & 6, 00, 000 Net Profit Before Interest and Tax & 8, 00, 000 \end{matrix}$

Q. From the following information, calculate Inventory Turnover Ratio:

	₹
Revenue from Operations	16,00,000
Average Inventory	2,20,000
Gross Loss Ratio 5%

From the following information, calculate inventory turnover ratio; Revenue from Operations (Sales) Rs. 16,00,000; Average Inventory Rs. 2,20,000; Gross Loss Ratio 5%.

From the given information, calculate the following:

(i) Cost of revenue from operations.

(ii) Opening and closing inventory.

(iii) Quick assets.

(iv) Current assets.

Information :

Inventory turnover ratio 6 times, inventory at the end is Rs 6,000 more than the inventory in the beginning, revenue from operation (all credits) Rs 2,40,000 ,Gross profit 25 $%$ on cost, current liabilities Rs 80,000, quick ratio 0.80 : 1.

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	Rs.
Inventory in the beginning	50,000
Inventory at the end	60,000
Revenue from operations	4,00,000
Gross Profit	1,94,000
Cash and Cash Equivalents	40,000
Trade Receivables	1,00,000
Trade Payables	1,90,000
Other Current Liabilities	70,000
Share Capital	2,00,000
Reserves and Surplus	1,40,000

(i) (ii)

(i)

(ii)