INDIAN SCHOOL MUSCAT Senior Section Department of Commerce and Humanities

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1 INDIAN SCHOOL MUSCAT Senior Section Department of Commerce and Humanities Class : 12 Worksheet-No 10 B Ratio Analysis Reference: T.S.Grewal Date of issue ACCOUNTANCY (055) Date of submission Compute the current ratio and quick ratio from the following figures extracted from X & Co. Goodwill `80,000 ; Land & Building `60,000 ; Inventory `13,640 ; Sundry Debtors ` 26,150 ; Cash ` 2,430 ; Payments in advance `3,100 ; Bills receivable `1,130 ; Advance income tax paid `5,000 ; Sundry creditors ` 20,287 ; Bills payable `900 ; Bank overdraft `2,600 ; Provision for taxation `6,200 ; Proposed Dividend ` 4,313 ; Reserve for deferred taxation `7, Current ratio is 2.5; working capital is `60,000. Calculate the amount of current assets and current liabilities. 3. Current ratio 2:1 ; Acid test ratio 0.75 ; Current liabilities `1,50,000. Calculate closing Inventory. 4. A firm had current assets of `1,50,000. It then paid a current liability of `30,000. After this payment, the current ratio was 2:1. Determine the size of current liabilities and working capital latter and before the payment was made. 5. X ltd. has a current ratio of 2.5:1 and quick ratio of 1.5:1. Its current assets are `2,00,000. Calculate the value of Inventory. 6. X ltd. has a current ratio of 4.5:1 and a quick ratio of 3:1. If its inventory is `72,000. Find out its Total current assets and Total current liabilities. 7. Quick ratio 1.5, Current assets `1,00,000; Current liabilities `40,000. Calculate the value of Inventory. 1 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

2 8. A business has current ratio of 3:1. Its net working capital is `4,00,000 and its Inventories are valued at `2,50,000. Calculate Quick ratio. 9. A firm had a current ratio of 4:1 and quick ratio of 2.5:1. Assuming inventories are `.22,500, Find out Total current assets and Total current liabilities. 10. X ltd. has a current ratio of 4.5:1 and quick ratio of 3:1. If its inventory is `36,000, Find out its Total Current assets, Total current liabilities and Quick assets. 11. X ltd. has a current ratio of 3.5:1 and quick ratio of 2:1. If the Inventory is `24,000, calculate total current liabilities and current assets. 12. A ltd. has a current ratio of 3.5:1 and acid test ratio of 2:1. If the inventory is `30,000, find out its total current assets and total current liabilities. 13. Priya ltd. has a current ratio of 3:1. If its Inventory is `40,000 and total current liabilities are `75,000. Find out its quick ratio. 14. A business has current ratio of 3:1 and quick ratio of 1.2:1 and the working capital is `1,80,000. Calculate the current liabilities and Inventory. 15. AB ltd. has a current ratio of 4.5:1 and a quick ratio of 3:1.If its Inventory is `36,000 find out its current assets and current liabilities. 16. Current liabilities of a Company are `2,80,000. Current ratio is 4:3 and quick ratio is 1:1. Find the value of Inventory. 17. Current liabilities of a company are `3,50,000. Its current ratio is 3 and liquid ratio is calculate the amount of current assets, liquid assets and inventory. 18. The current assets of a company are `15,00,000. Its current ratio is 3 and liquid ratio is Calculate its current liabilities, liquid assets and inventory. 19. Current liabilities of a company are `80,000. Liquid ratio is 1.5:1, current ratio is 2.5:1. Calculate the amount of quick assets, Inventory and current assets. 2 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

3 20. A business has a current ratio is 3:1 and quick ratio of 1.2:1. If the working capital is `1,80,000 calculate the total current assets and Inventory. 21. The current assets of a company are `1,26,000 and the current ratio is 3:2 and the inventories are `2,000. Find out the liquid ratio. 22. From the following information determine the opening Inventory and closing Inventory. Inventory turnover ratio 5 times. Total Revenue from Operation `2,00,000. Gross profit ratio is 25%, closing Inventory is more than by `4,000 than the opening Inventory. 23. Calculate Inventory turnover ratio from the following: opening Inventory `29,000; closing Inventory `31,000; Revenue from Operation `3,20,000; gross profit ratio 25%. 24. Following figures have been extracted from Tulsian ltd. Inventory in the beginning of the year `60,000. Inventory at the end of the year `1,00,000; Inventory turnover ratio 8 times; selling price 25% above cost. Compute the amount of gross profit and Revenue from Operation. 25. A trader carries an average Inventory of `40,000(cost). His Inventory turnover is 8 times. If he sells goods at a profit of 20% on Revenue from Operation. Find out his profit. 26. Average Inventory carried by a trader is `60,000. Inventory turnover ratio is 10 times. Goods are sold at a profit of 10% on cost. Find out the profit. 27. Opening Inventory `29,000; Closing Inventory `31,000; Revenue from Operation `3,00,000, Gross profit 25% on cost. Calculate Inventory turnover ratio. 28. From the following details calculate opening Inventory and closing Inventory. Inventory turnover ratios 6 times. Gross profit 20% on Revenue from Operation. Revenue from Operation being `1,80,000. Closing Inventory is `15,000 in excess of opening Inventory. 29. Inventory turnover ratio is 3 times. Revenue from Operation are `1,80,000, Opening Inventory is `2,000 more than the closing Inventory. Calculate the opening and closing Inventory when goods are sold at 20% profit on cost. 3 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

4 30. `2,00,000 is the Cost of Revenue from Operation, inventory turnover 8 times; Inventory at the beginning is 1.5 times more than the Inventory at the end. Calculate the values of opening and closing Inventory. 31. `2,40,000 is the Cost of Revenue from Operation, inventory turnover is 8 times ; Inventory at the beginning is 1.5 times more than the Inventory at the end. Calculate the values of opening and closing Inventory. 32. Calculate the amount of gross profit from the following information: Average Inventory `80,000 ; Inventory turnover ratio 6 times ; Selling price 25% above cost 33. Calculate Inventory turnover ratio from the following information: Annual Revenue from Operation `2,00,000 ; Gross profit 25% on cost, opening Inventory `38,500 ; Closing Inventory `41, Calculate Opening and Closing Inventory from the following information : Total Revenue from Operation `6,00,000 ; Gross profit 25% on Revenue from Operation; Inventory turnover ratio 5 times ; Closing Inventory is `12,000 more than the opening Inventory. 35. From the given information calculate the Inventory turnover ratio: Revenue from Operation `2,00,000 ; Gross profit 25% on cost ; Opening Inventory was 1/3 rd of the value of closing Inventory. Closing Inventory was 30% on Revenue from Operation. 36. Following figures have been extracted from Tulsian ltd. Inventory in the beginning of the year `60,000. Inventory at the end of the year `1,00,000; Inventory turnover ratio 8 times; selling price 25% above cost. Compute the amount of gross profit and Revenue from Operation. 37. Compute the Debtors turnover ratio from the following: ` ` Gross Revenue from Operation 9,00,000 7,50,000 4 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

5 Debtors in the beginning 83,000 1,17,000 Debtors in the end 1,17,000 83, Calculate Debtors turnover ratio and Average collection period in terms of months from the following: Credit Revenue from Operation `60,000 ; Debtors `5,000 ; Bills receivables `5, From the following calculate Debtors turnover ratio and Average collection period. Opening Debtors `37,000 ; Closing Debtors ` 43,000, Revenue from Operation `6,00,000, Cash Revenue from Operation `80, From the following particulars determine Debtors at the end of the year. Credit Revenue from Operation `2,92,000, Credit collection period 73 days, Debtors in the beginning `56, Calculate Debtors turnover ratio from the following data: Opening Debtors `1,00,000, Cash Revenue from Operation 25% of credit Revenue from Operation, Opening debtors are `60,000 more than the Closing Debto` Total Revenue from Operation `3,00, From the following particulars calculate the Creditors Turnover ratio: Total Revenue from Operation `12,50,000, Total purchases ` 10,00,000, Cash purchases `2,60,000, Cash Revenue from Operation `3,50,000, Purchase return `40,000, Creditors at the beginning `40,000, Creditors at the end `1,00, Calculate the Net working capital turnover ratio from the following data: Cost of Revenue from Operation `2,50,000, Current assets `2,52,100, Current liabilities `70, From the following data compute Fixed assets turnover ratio : Cost of Revenue from Operation `4,50,000, Gross profit 20% on cost, Fixed assets(net) Rs,1,00,000, Accumulated Depreciation `20, Calculate Current assets turnover ratio from the following information: Cost of Revenue from Operation `6,00,000, Gross profit 25% on Revenue from Operation, Current assets `5,00, A company earns a gross profit of 20% on cost. Its credit Revenue from Operation is twice its cash Revenue from Operation. If the credit Revenue from Operation are `4,00,000. Calculate the gross profit ratio of the company. 5 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

6 47. Compute the Gross profit ratio from the following information: Revenue from Operation `4,00,000 and gross profit 25% on cost. 48. Compute the Gross profit ratio from the following information: Revenue from Operation `6,00,000, Gross profit 25% on cost. 49. Following is the Trading and Profit and Loss a/c of a firm for the year ending : Particulars Amount Particulars Amount To Inventory 35,000 By Revenue from 4,00,000 Operation To purchases 2,25,000 By closing Inventory 50,000 To wages 6,000 To Gross profit c/d 1,84,000 4,50,000 4,50,000 To Administration 10,000 By Gross profit b/d 1,84,000 expenses To Selling & 14,000 distribution Exp. To Loss on sale of 10,000 plant To Net Profit 1,50,000 1,84,000 1,84,000 Calculate Operating ratio, gross profit ratio and net profit ratio. 50. Calculate Cost of Revenue from Operation from the following information: Revenue from Operation `11,20,000, operating expenses `1,82,000, Operating Ratio 92%. 51. The Gross profit be 25%, Cash Revenue from Operation `72,000, Credit Revenue from Operation are 10% of the total Revenue from Operation. Compute Cost of Revenue from Operation. 52. Calculate the Gross profit ratio : Purchases `2,00,000, Cash Revenue from Operation `2,50,000, Credit Revenue from Operation are 50% of total Revenue from Operation. Opening Inventory `62,000, Closing Inventory `85, Gross profit ratio of a company was 40%. If credit Revenue from Operation were `3,00,000 and its cash Revenue from Operation were 90% of the total Revenue from Operation. Indirect expenses of the company were `2,40,000 and Direct expenses were `1,50,000. Calculate Net profit ratio. 54. Following is the Balance Sheet of S &Co as on 31 st March 2006: 6 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

7 Liabilities Amount Assets Amount Equity share capital Fixed assets 18,00,000 1,50,000 shares of 15,00,000 Current assets 8,50,000 `10 each Reserves & Surplus 3,50,000 8% Debentures 6,50,000 Current liabilities 1,50,000 26,50,000 26,50,000 Compute Return on capital employed. 55. From the following details calculate Return on Investment : Gross profit `2,60,000, Selling & Distribution expenses `72,000, 10% Debentures `1,50,000, Tax `30,000, Fixed assets `6,50,000, Current assets `3,00,000, Current liabilities `1,20, Calculate Debt equity ratio: 20,000 equity `5per share `1,00,000, 8% preference share Rs,45,000, 13% Debentures `30,000, Preliminary expenses `5,000,General reserve `40,000, Bank loan `39,000, Net loss `3, From the following information calculate Debt Equity ratio: Share capital `1,60,000, General reserve `80,000, 15% Loan `1,00,000, Revenue from Operation for the year `1,00,000, tax paid during the year `40,000, Profit after interest and tax `80, Compute the Total assets to Debt ratio from the following: Capital employed `9,00,000, Investments `35,000, Land `3,00,000, Debtors `75,000, Cash `50,000, Share capital `3,50,000, Debentures `1,00,000, Capital reserve `80,000, Profit and loss a/c `10, Calculate Proprietary ratio from the following: Share capital `60,000, General reserve `11,550, preliminary expenses `450, Deferred revenue expenditure `3,000, Current assets `8,850, Machinery `12,000, Land and Building `26,250, cash in hand `3, From the details given below calculate any two ratios from the following: 1) Current ratio, 2) Quick ratio 3) Working capital ratio Sundry Debtors `4,00,000 ; Bills payable `80,000 ; Inventory ` 1,60,000 ; Sundry creditors `1,60,000 ; Marketable securities `80,000 ; Debentures `2,00,000 ; Cash `1,20,000 ; Expenses payable 7 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

8 `1,60,000 ; Prepaid expenses `40,000 ; Net Revenue from Operation ` 20,00, From the following details given below calculate any two ratios : 1) Gross profit ratio 2) Inventory turnover ratio 3) Operating ratio 4) Debtors turnover ratio Revenue from Operation `1,50,000 ; Cost of Revenue from Operation `1,20,000 ; Opening Inventory `29,000 ; Closing Inventory `31,000 ; Debtors `16,000 ; Operating expenses `16,000 ; Net fixed assets `1,10, On the basis of the information given below calculate any two of the following ratios : 1) Gross profit ratio 2) Debt equity ratio 3) Working capital turnover ratio Net Revenue from Operation `5,65,000 ; Cost of Revenue from Operation `3,75,000; Current liabilities `1,75,000 ; Loan `1,25,000 ; Current assets `3,25,000; Equity share capital `3,95,000 and Debentures `1,29, Calculate the current assets of a company from the following information: Inventory turnover ratio 4 times ; Inventory at the end `20,000 more than at the beginning, Revenue from Operation `3,00,000. Gross profit ratio 25%, current liabilities `40,000, Quick ratio Calculate the amount of Opening Debtors and Closing debtors from the following figures : Debtors turnover ratio 4 times, Cost of Revenue from Operation `6,40,000, Gross profit ratio 205, Closing Debtors were `20,000 more than at the beginning, Cash Revenue from Operation being 33-1/3% of Credit Revenue from Operation. 65. From the following information calculate any three ratios : 1) Operating ratio 2) Quick ratio 3) Working capital turnover ratio 4) Debt to total funds ratio Equity share capital `1,00,000 ; 12% preference share capital `80,000; 12% Debentures `60,000 ; General reserve ` ; Revenue from Operation `3,00,000 ; Opening Inventory `10,000 ; 8 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

9 Purchases `1,20,000 ; Wages `3,00,000 ; Closing Inventory `30,000 ; Selling and distribution expenses `10,000; Other Current assets `2,00,000 and current liabilities `1,20, Share Capital `12,00,000, Reserves and Surplus `3,00, 000, Securities Premium Reserve `1,00,000, 10 % Interest on Debenture `40,000. Net profit after interest and Tax `6,00,000 and tax rate 40%. Calculate Return on Capital Employed. 67. Share Capital `8,00,000, Reserves and Surplus `2,00, 000, Profit and Loss a/c (Cr) 80, % Debenture `3,00,000. Net profit after interest and Tax `7,50,000 and Tax rate 25%. Calculate Return on Investment. 68. Net profit after interest and Tax `4,00,000, Tax rate 50%. 12% Debentures `3,00,000. Calculate Interest Coverage Ratio. 69. Net profit after interest and Tax `4,00,000, Tax rate 60%. 10% Debentures `4,00,000. Calculate Interest Coverage Ratio. 70. The current ratio of a company is 2:1. State giving reasons which of the following would improve, reduce or not change the ratio: (i) Repayment of a current liability (ii) Purchasing goods on cash (iii) Sale of office equipment for `4,000 (book value `5,000) (iv) Sale of goods for `11,000 (cost `10,000) (v) Payment of dividend. 71. Calculate Liquidity Ratio from the following information: Current Liabilities = `50,000 ;Current Assets = ` 80,000Inventories = `20,000; Advance Tax = `5,000 ; Prepaid Expenses = `5, X Ltd. has a current ratio of 3.5:1 and quick ratio of 2:1. If excess of Current assets over quick assets represented by inventories is ` 24,000, Calculate current assets and current liabilities. 73. Calculate the current ratio from the following information: Total Assets =`3,00,000 Non-current Liabilities = `80,000, Shareholders Funds =`2,00,000 Non-Current Assets: Fixed Assets=`1,60,000 Non-current Investments = `1,00, The current ratio is 2:1. State giving reasons which of the following transactions would improve, reduce and not change the current ratio: (a) Payment of current liability; (b) Purchased goods on credit; (c) Sale of desktop (Book value `4,000) for `3,000 only; (d) Sale of merchandise (goods) costing `10,000 for `11,000; 9 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

10 (e) Payment of dividend. 75. From the following information, calculate Debt Equity Ratio, Total Assets to DebtRatio, Proprietary Ratio, and Debt to Capital Employed Ratio. Particulars I. Equity and Liabilities 1.Shareholders funds a) Share capital b) Reserves and surplus c) Money received against share warrants 2.Non-current Liabilities a) Long-term borrowings b) Other long-term liabilities c) Long-term provisions 3.Current Liabilities a) Short-term borrowings b) Trade payables c) Other current liabilities d) Short-term provisions Note No. ` 12,00,000 2,00,000 1,00,000 4,00,000 40,000 60,000 2,00,000 1,00,000 50,000 1,50,000 II. Assets 1.Non-Current Assets a) Fixed assets b) Non-current investments c) Long-term loans and advances 2.Current Assets a) Current investments b) Inventories c) Trade receivables d) Cash and cash equivalents e) Short-term loans and advances 25,00,000 15,00,000 2,00,000 2,00,000 1,50,000 1,50,000 1,00,000 2,50,000 25,00, From the following information, calculate Debt Equity Ratio, Total Assets to Debt Ratio, Proprietary Ratio. Particulars Note No. I. Equity and Liabilities 1.Shareholders funds a) Share capital b) Reserves and surplus 2.Non-current Liabilities ` 4,00,000 1,00, I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

11 a) Long-term borrowings 3.Current Liabilities II. Assets 1.Non-Current Assets a) Fixed assets b) Non-current investments 2.Current Assets 1,50,000 50,000 7,00,000 4,00, ,000 2,00,000 7,00, The debt equity ratio of X Ltd. is 0.5:1. Which of the following would increase/decrease or not change the debt equity ratio? (i) Further issue of equity shares (ii) Cash received from debtors (iii) Sale of goods on cash basis (iv) Purchase of goods on credit. 78. From the following details, calculate interest coverage ratio: Net Profit after tax ` 60,000; 15% Long-term Debt `10,00,000; and Tax Rate 40%. 79. From the following information, calculate Inventory turnover ratio Inventory in the beginning = `18,000 Inventory at the end = `22,000 Net purchases = ` 46,000Wages = `14,000Revenue from operations = `80,000Carriage inwards = `4, From the following information, calculate Inventory turnover ratio: Revenue from operations = `4,00,000 ; Average Inventory = `55,000 Gross Loss Ratio = 10%. 81. A trader carries an average inventory of ` 40,000. His inventory turnover ratio is 8 times. If he sells goods at a profit of 20% on Revenue from operations, find out the profit. 82. Calculate the Trade Receivables Turnover Ratio from the following information: Total Revenue from Operations ` 4,00,000 ;Cash Revenue from Operations 20% of Total Revenue from operations; Trade Receivables as at `40,000 ;Trade Receivables as at `1,20, Calculate the Trade Payables Turnover Ratio from the following figures: 11 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

12 Credit purchases during = `12,00,000 Creditors on = `3,00,000 Bills Payables on =`1,00,000 Creditors on = `1,30,000 Bills Payables on = `70, From the following information, Calculate (i) Trade Receivables Turnover Ratio (ii) Average Collection Period (iii)trade Payable Turnover Ratio (iv)average Payment Period Revenue from Operations `8,75,000 ;Creditors `90,000 Bills Receivable ` 48,000 ;Bills Payable `52,000 Purchases ` 4,20,000 ;Trade Receivables `59, From the following information, calculate (i) Net Assets Turnover, (ii) Fixed AssetsTurnover, and (iii) Working Capital Turnover Ratios : Preference Shares Capital ` 4,00,000 ;Plant and Machinery `8,00,000, Equity Share Capital ` 6,00,000 ;Land and Building ` 5,00,000, General Reserve ` 1,00,000 ;Motor Car ` 2,00,000, Balance in Statement of Profit and loss `3,00,000;Furniture `1,00,000, 15% Debentures ` 2,00,000 ;Inventory`1,80,000, 14% Loan ` 2,00,000 ;Debtors `1,10,000 ;Creditors `1,40,000, Bank ` 80,000 ;Bills Payable ` 50,000 ;Cash `30,000,Outstanding Expenses `10, Following information is available for the year , calculate gross profit ratio: Cash Revenue from Operations ` 25,000 Credit Revenue from Operations `75,000 Cash Purchases `15,000 Credit Purchases `60,000 Carriage Inwards ` 2,000 Salaries `25,000 Decrease in Inventory `10,000 Return Outwards `2,000 Wages `5, Given the following information: Revenue from Operations `3,40,000 Cost of Revenue from Operations `1,20,000 Selling expenses `80,000 Administrative Expenses `40,000 Calculate Gross Profit Ratio and Operating Ratio 12 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

13 88. Gross profit ratio of a company was 25%. Its credit revenue from operations was ` 20,00,000 and its cash revenue from operations was 10% of the total revenue from operations. If the indirect expenses of the company were ` 50,000,calculate its net profit ratio. 89. From the following details, calculate Return on Investment: Share Capital : Equity(`10) `4,00,000 Current Liabilities `1,00,000 12% Preference `1,00,000 Fixed Assets `9,50,000 General Reserve `1,84,000 Current Assets `2,34,000 10% Debentures `4,00, Calculate current assets of a company from the following information: Inventory turnover ratio = 4 times Inventory at the end is `20,000 more than the inventory in the beginning. Revenue from Operations `3,00,000 and gross profit ratio is 20% of revenue fromoperations.current liabilities = `40,000 ;Quick ratio = The current ratio is 2.5:1. Current assets are ` 50,000 and current liabilitiesare ` 20,000. How much must be the decline in the current assets to bring theratio to 2: Following information is given by a company from its books of accounts as onmarch 31, 2014: Inventory ` 1,00,000 ;Total Current Assets ` 1,60,000 ;Shareholders funds `4,00,000 ; 13% Debentures `3,00,000 ;Current liabilities `1,00,000 Net Profit Before Tax `3,51,000 ;Cost of revenue from operations. 5,00,000. Calculate: i) Current Ratio ii) Liquid Ratio iii) Debt Equity Ratio iv) Interest Coverage Ratio v) Inventory Turnover Ratio 93. Current Ratio is 3.5:1. Working Capital is `90,000. Calculate the amount of Current Assets and Current Liabilities. 13 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

14 94. Shine Limited has a current ratio 4.5:1 and quick ratio 3:1; if the inventory is 36,000, calculate current liabilities and current assets. 95. Current liabilities of a company are `75,000. If current ratio is 4:1 and ratio is 1:1, calculate value of current assets, liquid assets and inventory. 96. Handa Ltd. has inventory of `20,000. Total liquid assets are `1,00,000 and quick ratio is 2:1. Calculate current ratio. 97. Calculate debt-equity ratio from the following information: Total Assets `15,00,000 ;Current Liabilities `6,00,000 ;Total Debts `12,00, Calculate Current Ratio if: Inventory is `6,00,000; Liquid Assets `24,00,000; Quick Ratio 2: Compute Inventory Turnover Ratio from the following information: Net Revenue from Operations `2,00,000 Gross Profit `50,000 Inventory at the end `60,000 Excess of inventory at the end over `20,000 inventory in the beginning 100. Calculate following ratios from the following information: (i) Current ratio (ii) Acid test ratio (iii) Operating Ratio (iv) Gross profit ratio Current Assets`35,000 ;Current Liabilities`17,500 ;Inventory`15,000, Operating Expenses`20,000 ;Revenue from Operations`60,000 and Cost of Goods Sold `30, 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: Revenue from Operations `25,20,000 ;Net Profit `3,60,000 Cost 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, Compute Gross Profit Ratio, Working Capital Turnover Ratio, Debt Equity Ratioand Proprietary Ratio from the following information: Paid-up Share Capital `5,00,000 ;Current Assets `4,00,000, Revenue from Operations `10,00,000 ;13% Debentures `2,00,000, 14 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S

15 Current Liabilities `2,80,000 ;Cost of Revenue from Operations `6,00, Calculate Inventory Turnover Ratio if: Inventory in the beginning is `76,250, Inventory at the end is 98,500, Revenue from Operations is `5,00,000, Purchases is `3,22, Calculate Inventory Turnover Ratio from the data given below: Inventory in the beginning of the year `10,000, Stock at the end of the year `5,000 ;Carriage ` 2,500 Revenue from Operations `50,000 ;Purchases ` 25, A trading firm s average inventory is `20,000 (cost). If the inventory turnover ratio is 8 times and the firm sells goods at a profit of 20% on sales, ascertain the profit of the firm Calculate the amount of Current Liabilities that should be paid. (a) The ratio of current Assets (`600000) to current Liabilities ( ` ) is 1.5:1. The Accountant of the firm is interested in maintaining a current Ratio be 2:1 by paying off a part of Liabilities. (b) The Current Assets to Current Liability of a firm is ` to ` The Accountant of the firm wishes that current Ratio be 2:1 by acquiring current assets on credit. Calculate the amount of current Assets. ************************ 15 I S M A C C O U N T A N C Y C L A S S 1 2 W O R K S H E E T R A T I O A N A L Y S I S