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.

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

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 current ratio of Y Ltd. is 2:1. State with reason which of the following transactions would (i) increase; (ii) decrease or (iii) not change the ratio.
(1) Trade receivables included debtors of Rs.40,000 which were received.
(2) Company purchased furniture of Rs.45,000. The vendor was paid by issue of equity shares of Rs.10 each at par.

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

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

From the following information calculate any two of the following ratios:
(i) Gross Profit Ratio   (ii) Working Capital Turnover Ratio    (iii) Proprietary Ratio     (iv) Debt Equity Ratio