What is meant by accounting ratios?

What is quick ratio?

What is meant by debt equity ratio?

What does return on investment ratio indicate?

State any two limitations of ratio analysis.

Calculate the current ratio from the following information.

Particulars	Rs.	Particulars	Rs.
Current investments	40,000	Fixed assets	5,00,000
Inventories	2,00,000	Trade creditors	80,000
Trade debtors	1,20,000	Bills payable	50,000
Bills receivable	80,000	Expenses payable	20,000
Cash and cash equivalents	10,000	Non-current liability	3,00,000

Calculate quick ratio: Total current liabilities Rs. 2,40,000; Total current assets Rs. 4,50,000; Inventories Rs. 70,000; Prepaid expenses Rs. 20,000.

From the following information of Geetha Ltd., calculate fixed assets turnover ratio
(i) Revenue from operations during the year were Rs. 55,00,000.
(ii) Fixed assets at the end of the year Rs. 5,00,000.

Calculate gross profit ratio from the following:
Revenue from operations Rs. 2,50,000, Cost of revenue from operations Rs. 2,10,000 and Purchases Rs. 1,80,000.

Calculate current ratio from the following information:

Particulars	Rs.	Particulars	Rs.
Current investments	80,000	Trade creditors	1,60,000
Inventories	1,60,000	Bills payable	1,00,000
Trade receivables	4,00,000	Expenses payable	1,40,000
Cash and cash equivalents	1,20,000
Prepaid expenses	40,000

Calculate quick ratio of Ananth Constructions Ltd from the information given below.

Particulars	Rs.
Total current liabilities	1,00,000
Total current assets	2,50,000
Inventories	50,000
Prepaid expenses	15,000

Calculate gross profit ratio from the following:
Revenue from operations Rs.1,00,000, Cost of revenue from operations Rs.80,000 and purchases Rs. 62,500

From the following information calculate capital gearing ratio:

Balance Sheet (Extract) as on 31.03.2018

Particulars	Rs.
I EQUITY AND LIABILITIES
1. Shareholders' funds
(a) Share capital
Equity share capital	2,00,000
6% Preference share capital	1,00,000
(b) Reserves and surplus
General reserve	1,25,000
Surplus	75,000
2. Non-current liabilities
Long-term borrowings (8% Debentures)	2,00,000
3. Current liabilities
Trade payables	1,50,000
Provision for tax	50,000
Total	9,00,000

From the following details of a business concern calculate net profit ratio.

Particulars	Rs.
Revenue from operations	3,50,000
Cost of revenue from operations	1,50,000
Administration expenses	50,000
Selling expenses	10,000

The credit revenue from operations of Harini Ltd. amounted to Rs.9,60,000. Its debtors and bills receivable at the end of the accounting period amounted to Rs.1,00,000 and Rs.60,000 respectively. Calculate trade receivable turnover ratio and also collection period in months.

From the following information of Ashika Ltd., calculate fixed assets turnover ratio:
(i) Revenue from operations during the year were Rs.60,00,000.
(ii) Fixed assets at the end of the year was Rs.6,00,000.

Following is the extract of the balance sheet of Babu Ltd., as on 31st March, 2018:

Particulars	Amount Rs.
I EQUITY AND LIABILITIES
1. Shareholders' funds
(a) Share capital	70,000
(b) Reserves and surplus	25,000
2. Non-current liabilities
Long-term borrowings	30,000
3. Current liabilities
(a) Trade payables	20,000
(b) Other current liabilities	15,000
(c) Short-term provisions	42,000
Total	2,02,000

Net profit before interest and tax for the year was Rs.25,000. Calculate the return on capital employed for the year.