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.

The inventory turnover ratio of a company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of increase in the value of closing inventory by Rs.5,000.

The trade receivables turnover ratio of a company is 6 times. State with reason whether the ratio will improve, decrease or not change due to increase in the value of closing inventory by Rs.50,000.

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

The current ratio of a company is 3:1. State with reason whether the payment of Rs.20,000 to the creditors will increase, decrease or not change the ratio.

The gross profit ratio of a company is 50%. State with reason whether the rent received by Rs.15,000 will increase, decrease or not change the ratio.

State with reason whether repayment of long-term loan will result in increase or decrease or no change of debt equity ratio.

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 ratio of Current Assets (Rs.6,00,000) to Current Liabilities (Rs.4,00,000) is 1.5:1. The accountant of the firm is interested in maintaining a Current ratio of 2:1, by paying off a part of the current liabilities. Compute the amount of current liabilities that should be paid, so that the current ratio at the level of 2:1 may be maintained.

The current ratio of X Ltd. is 2:1. State with reason which of the following transaction would (i) increase; (ii) decrease or (iii) not change the ratio:
(1) Included in the trade payables was a bills payable of Rs.9,000 which was met on maturuty.
(2) Company issued 1,00,000 equity shares of Rs.10 each to the Vendors of machinery purchased.

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

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.

Calculate current ratio from the following:

Assuming that the Debt-Equity ratio is 2. State giving reasons whether this ratio would increase, decrease or remain unchanged in the following cases: (Any four)
(a) Purchase of fixed asset on a credit of 2 months.
(b) Purchase of fixed asset on a long-term deferred payment basis.
(c) Issue of New shares for cash.
(d) Issue of Bonus shares.
(e) Sale of fixed asset at a loss of Rs.3,000.
(f) Conversion of debentures into equity shares.
(g) Payment to Creditors
(h) Sale of a fixed asset at Profit

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

The current ratio of a company is 2:1. State giving reasons which of the following would improve, reduce or not change the ratio:
(i) Repayment of Trade payables
(ii) Purchasing goods on credit
(iii) Sale of Motor vehicles at a loss of 20%
(iv) Sale of goods at a profit of 10%
(v) Payment of final dividend already declared
(vi) Redemption of debentures at a premium.

From the following information, calculate Inventory Turnover Ratio:

From the following information calculate any two of the following ratios:
(i) Current Ratio
(ii) Debt Equity Ratio
(iii) Operating Ratio
(iv)Operating Profit Ratio
Information:
Revenue from Operations Rs.1,00,000; Cost of Revenue from Operations was 80% of Revenue from Operations; Equity share Capital Rs.7,00,000; General Reserve Rs.30,000; Operating Expenses Rs.10,000; Quick Assets Rs.6,00,000; 9% Long-term borrowings Rs.5,00,000; Closing Inventory Rs.50,000; Prepaid Expenses Rs.10,000 and Current Liabilities Rs.4,00,000.

Who are mainly interested in activity ratios?

What does inventory turnover ratio indicate?