Ratio Analysis B Com Notes | EduRev

Cost Accounting

Created by: Universal Academy

B Com : Ratio Analysis B Com Notes | EduRev

The document Ratio Analysis B Com Notes | EduRev is a part of the B Com Course Cost Accounting.
All you need of B Com at this link: B Com

Problem 1:
The following is the Balance Sheet of a company as on 31st March:
Ratio Analysis B Com Notes | EduRev
Calculate :
(1) Current Ratio
(2) Quick Ratio
(3) Inventory to working Capital
(4) Debt to Equity Ratio
(5) Proprietary Ratio
(6) Capital Gearing Ratio
(7) Current Assets to Fixed Assets
Solution. 
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev

Problem 2:
From the following particulars found in the Trading, Profit and Loss Account of A Company Ltd., work out the operation ratio of the business concern:
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Solution.
Ratio Analysis B Com Notes | EduRev

Problem 3:
The following is the summarised Profit and Loss Account of Taj Products Ltd. for the year ended 31st December:
Ratio Analysis B Com Notes | EduRev
Work out the following ratios:
(1) Gross Profit Ratio
(2) Net Profit Ratio
(3) Operating Ratio
(4) Cost Ratios (to cost of Production)
(i) Materials Consumed Ratio
(ii) Labour Cost Ratio
(iii) Production Overhead Cost Ratio.
Solution.
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev

Problem 4:
From the following Balance Sheet and additional information, you are required to calculate:
(i) Return on Total Resources
(ii) Return on Capital Employed
(iii) Return on Shareholders’ Fund
Ratio Analysis B Com Notes | EduRev
Net operating profit before tax is Rs. 2,80,000. Assume tax rate at 50%. Dividend declared amounts to Rs.1,20,000.
Solution.
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev

Problem 5:
A company has capital of Rs. 10, 00,000; its turnover is 3 times the capital and the margin on sales is 6%. What is the return on investment.
Solution.
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev

Problem 6:
Ram & Company supplies you the following information regarding the year ended 31st December:
Solution.
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Average InventoryRatio Analysis B Com Notes | EduRev
Inventory Turnover Ratio Analysis B Com Notes | EduRev


Problem 7: 
The following is the Profit and Loss Account of Burn Ltd.
Ratio Analysis B Com Notes | EduRev
You are required to calculate the following :
(i) Stock Turnover
(ii) Raw Materials Turnover
(iii) Average Material Holding
Solution.
Ratio Analysis B Com Notes | EduRev
Workings :
(1) Cost of Sales 

= Total Cost + Opening Stock of Finished Goods - Closing Stock of Finished Goods
= Rs. 11,90,000 + Its. 80,000 - Its. 1,00,000 = Rs. 11,70,000
Ratio Analysis B Com Notes | EduRev
= Rs. 60,000 + Rs. 6, 00,000
= Rs. 5, 90,000

Problem 8:
Calculate Debtors Velocity from the following details:
Opening Balance of Debtors Rs. 10,000
Credit Sales during the year Rs. 20,000
Sales Returns Rs. 1,000
Discount on Sales Rs. 50
Cash collected from Debtors during the year Rs, 5,000
Bad Debts Rs. 500
Bad Debt Provision at 10%
Solution.
The following components are needed to find Debtors Velocity :
1. Net Sales = Gross Sales - (Sales Returns + Discount on Sales)
= Rs. 20,000 - (Rs. 1,000 + Rs. 50)
= Rs. 18.950
2. Net Debtors on Closing = Opening Debtors
Add : Credit Sales
Less : Cash Collection
Less : Sales Returns
Less : Sales Discount
Rs. 10,000 + Rs. 20,000 - (Rs. 5,000 + Rs. 1,000 + Rs. 50) = Rs. 23,950
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev

Problem 9: 
The Capital of a Company is as follows:
Ratio Analysis B Com Notes | EduRev
The Accountant has ascertained the following information :
Profit (after tax at 60%)   Rs. 2,70,000.
Depreciation                      Rs. 60,000
Equity Dividend Paid 20%
Market Price of equity share Rs. 40.
You are required to state the following, showing the necessary workings :
(a) Dividend yield on the equity shares.
(b) Cover for the preference and equity dividends.
(c) Earnings for equity shares.
(d) Price-earnings ratio
Solution. 
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev

Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev

Problem 10:
Assume that a firm has owners’ equity of Rs. 1, 00,000. The ratios for the firm are:
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
Ratio Analysis B Com Notes | EduRev
7. Cash = Current Assets — Inventory
= Rs. 1,00,000 — Rs. 40,000 = Rs. 60,000
8. Current Debt = 0.40 x Total Debt = 0.40 x Rs. 60,000 = Rs. 24,000
9. Long-Term Debt = Total Debt — Current Debt = Rs. 60,000 — Rs. 24,000 = Rs. 36,000 

Dynamic Test

Content Category

Related Searches

ppt

,

Extra Questions

,

Important questions

,

mock tests for examination

,

Ratio Analysis B Com Notes | EduRev

,

Objective type Questions

,

Ratio Analysis B Com Notes | EduRev

,

Semester Notes

,

pdf

,

Free

,

shortcuts and tricks

,

Ratio Analysis B Com Notes | EduRev

,

past year papers

,

Viva Questions

,

video lectures

,

Sample Paper

,

MCQs

,

Previous Year Questions with Solutions

,

Summary

,

Exam

,

study material

,

practice quizzes

;