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Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:
Trade Receivables Turnover Ratio 4 times
Current Liabilities ₹ 5,000
Average Debtors ₹ 1,80,000
Working Capital Turnover Ratio 8 times
Cash Revenue from Operations 25% of Revenue from Operations
Gross Profit Ratio
What will be the value of current assets?
Current Assets = Working Capital + Current Liabilities
= ₹1,20,000 + ₹5,000
= ₹1,25,000
Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:
Trade Receivables Turnover Ratio 4 times
Current Liabilities ₹ 5,000
Average Debtors ₹ 1,80,000
Working Capital Turnover Ratio 8 times
Cash Revenue from Operations 25% of Revenue from Operations
Gross Profit Ratio
What is the revenue from operations?
= Credit Revenue from Operations / Average Trade Receivables
4 = Credit Revenue from Operations / 1,80,000
Credit Revenue from Operations = ₹1,80,000 × 4 = ₹ 7,20,000
Credit Revenue from Operations = 75% of Revenue from Operations
₹7,20,000 = 75% of Revenue from Operations Revenue from Operations = ₹9,60,000
Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:
Trade Receivables Turnover Ratio 4 times
Current Liabilities ₹ 5,000
Average Debtors ₹ 1,80,000
Working Capital Turnover Ratio 8 times
Cash Revenue from Operations 25% of Revenue from Operations
Gross Profit Ratio
What is the working Capital?
= Revenue from Operations / Working Capital
8 = 9,60,000 /Working Capital
Working Capital = 9,60,000 / 8 = ₹ 1,20,000
Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:
Trade Receivables Turnover Ratio 4 times
Current Liabilities ₹ 5,000
Average Debtors ₹ 1,80,000
Working Capital Turnover Ratio 8 times
Cash Revenue from Operations 25% of Revenue from Operations
Gross Profit Ratio
What is the Gross Profit?
= of ₹9,60,000 = ₹3,20,000
Consider the following data and answer the questions that follow:
What is the working capital turnover ratio?
= ₹12,00,000 / ₹1,45,000 = 8.28 times
Consider the following data and answer the questions that follow:
What is the Operating ratio?
= ₹9,00,000+ ₹15,000 / ₹12,00,000 x 100
= 76.25%
Consider the following data and answer the questions that follow:
What is the Debt to Equity Ratio?
Debt to equity Ratio = Total Debt / Shareholders' Fund
= ₹2,50,000 / ₹4,00,000 = 0.63:1
Consider the following data and answer the questions that follow:
What is the quick ratio?
= ₹2,00,000 / ₹ 75,000 = 2.67 : 1
Read the following information and answer the given questions:
Cost of Revenue from Operations for the year 2020 would be ______________.
Read the following information and answer the given questions:
Current Ratio for the year 2020 will be_____. (Choose the correct alternative)
= ₹43,00,000
Current Liabilities = Outstanding Expenses + Trade Payables
= ₹50,000 + ₹18,00,000
= ₹18,50,000
Current Ratio= Current Assets / Current Liabilities
= ₹43,00,000 / ₹18,50,000 = 2.32 : 1
Read the following information and answer the given questions:
Inventory turnover ratio for the year 2020 will be______.(Choose the correct alternative)
= ₹24,00,0000 - ₹2,88,000 / ₹11,00,000 = 1.92 times
Gross Profit Ratio = Gross Profit / Revenue from Operations
Gross Profit = 12% of ₹24,00,000 = ₹2,88,000
Read the following information and answer the given questions:
Quick Ratio for the year 2018 will be_____________. (Choose the correct alternative)
= ₹ 10,00,000 + ₹ 15,00,000
= ₹ 25,00,000
Current Liabilities = Outstanding Expenses + Trade Payables
= ₹25,000 + ₹14,00,000
= ₹ 14,25,000
Current Ratio= Current Assets / Current Liabilities
= ₹10,00,000 + ₹15,00,000 / ₹14,25,000 = 1.75 : 1
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56 videos|89 docs|68 tests
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