Quick ratio of a company is 1.5:1. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company.

The debt-equity ratio of a company is 0.8:1. State whether the long-term loan obtained by the company will improve, decrease or not change the ratio.

What will be the operating profit ratio if operating ratio is 83.64%? 

A business has a current ratio of 3:1. Its networking capital is Rs.4,00,000 and its stocks are valued at Rs.2,50,000. Calculate the quick ratio. Is it satisfactory? Identify the value shown by the company in maintaining such a quick ratio

A business has a current ratio of 3:1 and quick ratio of 1:2:1. If the working capital is Rs.1,80,000, calculate the total current assets and value of inventory.

Current liabilities of a company are Rs.1,60,000. Its Liquid ratio is 1.5:1 and Current ratio is 2.1:1. Calculate Quick assets and Current assets.

The Quick Ratio of a company is 1.5:1. State with reason which of the following transactions would (i) increase; (ii) decrease or (iii) not change the ratio:
(1) Paid rent Rs.3,000 in advance.
(2) Trade receivables included a debt as Shri Ashok who paid his entire amount due Rs.9,700.

Umesh Ltd.'s Debt Equity Ratio is 2:1. State with reason whether this will increase, decrease or there will be no change in it due to the following transactions:
(i) A trade payable of Rs.5,000 was paid
(ii) Issued equity shares of Rs. 2,00,000.
(iii) Issued 9% Debentures of Rs.1,000.

What does low trade receivables turnover ratio indicate?

How the solvency of a business assessed by financial statement analysis?

A company has a loan of Rs.30,00,000 as part of its capital employed. The interest payable on loan is 10% and the RoI of the company is 15%. The rate of income tax is 50%. What is the gain to the shareholders due to the loan raised by the company?

Calculate the current ratio if working capital Rs.15,000, total liabilities (other than shareholders' funds) Rs.32,500, long-term debt Rs.25,000.

The current ratio of a company is 21:1.2. State with reasons which of the following transactions will increase, decrease or not change the ratio.
(i) Redeemed 9% debentures of  Rs.1,00,000 at a premium of 10%.
(ii) Received from debtors Rs.17,000.
(iii)Issued Rs.2,00,000 equity shares to the vendors of machinery.
(iv) Accepted bills of exchange drawn by the creditors Rs.7,000.

Calculate the current ratio of a company from the following information.
Inventory turnover ratio = 4 times
Inventory at the end is 20,000 more than inventory in the beginning.
Revenue from operations, i.e. sales Rs.3,00,000, gross profit ratio 25% on sales, current liabilities Rs.40,000, quick ratio 0.75 : 1.