Calculate Current Ratio from the following information:
Inventory Turnover :4 times
Inventory in the beginning was Rs 20,000 less than Inventory at the end.
Revenue from Operation Rs.6,00,000.
Groos Profit Ratio 25%.
Current Liabilities Rs.60,000.
Quick Ratio 0.75:1.

3

(a)

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.

3

(a)

From the following information, Calculate Inventory Turnover Ratio, Operating Ratio, Gross Profit Ratio and ROI:

Particulars	Rs
Opening Inventory	28,000
closing Inventory	22,000
Purchase of Stock-in-Trade	46,000
Revenue from operations	80,000
Carriage Inwards	4,000
Office Expenses	4,000
Selling & Distribution Expenses	2,000
Capital Employed	2,00,000

3

(a)

Calculate 'Debt Equity Ratio' from the following information:

Total Assets Rs.3,50,000; Total Debt Rs.2,50,000 and Current Liabilities Rs.80,000.

3

(a)

Handa Ltd. has Inventory of Rs.20,000. Total liquid assets are Rs.1,00,000 and quick ratio is 2:1. Calculate current ratio.

3

(a)

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.

3

(a)

The Debt Equity Ratio of a company is 1:2. State with reason which of the following transactions would (i) increase, (ii) decrease or (iii) not change in ratio:
(1) Issued equity shares of Rs.1,00,000
(2) Obtained a short-term loan from bank Rs.1,00,000

3

(a)

From the information available from the books Ram Nath Limited on 31.03.2012, calculate:
(a) Liquid Ratio and (b) Inventory Turnover Ratio.
Inventory Rs.1,00,000, Trade Receivables Rs.1,20,000, Advance Tax Rs.4,00,000, Cash and Cash Equivalent Rs.60,000, Trade payables Rs.1,05,000,
Bank overdraft Rs.8,000, Cost of Revenue from Operations Rs.4,20,000.
Additional Information:
Closing inventory was Rs.20,000 more than opening inventory.

 

 

 

 

3

(a)

From the following information related to Naveen Ltd.
Calculate (a)Return on investment and (b)Total Assets to Debt Ratio.
Information: Fixed Assets Rs.75,00,000; Current Assets Rs.40,00,000; Current Liabilities Rs.27,00,000; 12% Debentures Rs.80,00,000 and Net Profit beore Interest,Tax and Dividend Rs.14,50,000

3

(a)

Who are mainly interested in liquidity ratios?

3

(a)

What is considered to be the ideal current ratio and quick ratio?

3

(a)

What does higher inventory turnover ratio indicate?

3

(a)

What does working capital turnover ratio indicate?

3

(a)

X Ltd has a inventory turnover ratio at 3 times. Its management is interested in maintaining this ratio at 4 times. What are the two choices to do so?

3

(a)