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On the basis of the following information, calculate : 1. Gross profit ratio 2. Debt equity ratio 3. Working capital turn over ratio. Net revenue from operation= 30,00,000 Cost of revenue from operation= 15,00,000 Current liabilities= 8,00,000 Current assets= 14,00,000 Debenture = 8,00,000 Equity share capital= 16,00,000?
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On the basis of the following information, calculate : 1. Gross profit...
Gross Profit Ratio:
The gross profit ratio is a profitability ratio that measures the percentage of gross profit earned on sales. It indicates the efficiency of a company's production or purchasing process. The formula to calculate the gross profit ratio is:

Gross Profit Ratio = (Gross Profit / Net Revenue from Operation) * 100

Given that the Net Revenue from Operation is 30,00,000 and the Cost of Revenue from Operation is 15,00,000, we can calculate the Gross Profit as follows:

Gross Profit = Net Revenue from Operation - Cost of Revenue from Operation
Gross Profit = 30,00,000 - 15,00,000
Gross Profit = 15,00,000

Now, we can calculate the Gross Profit Ratio:

Gross Profit Ratio = (15,00,000 / 30,00,000) * 100
Gross Profit Ratio = 50%

Therefore, the Gross Profit Ratio is 50%.

Debt Equity Ratio:
The debt equity ratio is a financial ratio that indicates the proportion of a company's financing that is provided by creditors compared to shareholders. It measures the solvency of a company and its ability to meet its long-term obligations. The formula to calculate the debt equity ratio is:

Debt Equity Ratio = Total Debt / Shareholders' Equity

Given that the Debenture is 8,00,000 and the Equity Share Capital is 16,00,000, we can calculate the Total Debt and Shareholders' Equity as follows:

Total Debt = Debenture
Total Debt = 8,00,000

Shareholders' Equity = Equity Share Capital
Shareholders' Equity = 16,00,000

Now, we can calculate the Debt Equity Ratio:

Debt Equity Ratio = 8,00,000 / 16,00,000
Debt Equity Ratio = 0.5

Therefore, the Debt Equity Ratio is 0.5.

Working Capital Turnover Ratio:
The working capital turnover ratio is an efficiency ratio that measures how effectively a company utilizes its working capital to generate sales. It indicates the number of times the working capital is turned over in a given period. The formula to calculate the working capital turnover ratio is:

Working Capital Turnover Ratio = Net Revenue from Operation / Working Capital

Given that the Current Liabilities is 8,00,000 and the Current Assets is 14,00,000, we can calculate the Working Capital as follows:

Working Capital = Current Assets - Current Liabilities
Working Capital = 14,00,000 - 8,00,000
Working Capital = 6,00,000

Now, we can calculate the Working Capital Turnover Ratio:

Working Capital Turnover Ratio = 30,00,000 / 6,00,000
Working Capital Turnover Ratio = 5

Therefore, the Working Capital Turnover Ratio is 5.

In summary:
- Gross Profit Ratio: 50%
- Debt Equity Ratio: 0.5
- Working Capital Turnover Ratio: 5
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On the basis of the following information, calculate : 1. Gross profit ratio 2. Debt equity ratio 3. Working capital turn over ratio. Net revenue from operation= 30,00,000 Cost of revenue from operation= 15,00,000 Current liabilities= 8,00,000 Current assets= 14,00,000 Debenture = 8,00,000 Equity share capital= 16,00,000?
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On the basis of the following information, calculate : 1. Gross profit ratio 2. Debt equity ratio 3. Working capital turn over ratio. Net revenue from operation= 30,00,000 Cost of revenue from operation= 15,00,000 Current liabilities= 8,00,000 Current assets= 14,00,000 Debenture = 8,00,000 Equity share capital= 16,00,000? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about On the basis of the following information, calculate : 1. Gross profit ratio 2. Debt equity ratio 3. Working capital turn over ratio. Net revenue from operation= 30,00,000 Cost of revenue from operation= 15,00,000 Current liabilities= 8,00,000 Current assets= 14,00,000 Debenture = 8,00,000 Equity share capital= 16,00,000? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On the basis of the following information, calculate : 1. Gross profit ratio 2. Debt equity ratio 3. Working capital turn over ratio. Net revenue from operation= 30,00,000 Cost of revenue from operation= 15,00,000 Current liabilities= 8,00,000 Current assets= 14,00,000 Debenture = 8,00,000 Equity share capital= 16,00,000?.
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