I.H.M Dehradun

ACCOUNTANCY

Notes by -:

G.K Sawhney

7895190950 TOPIC - RATIO ANALYSIS

Ques1) Following information is available in respect of Sumit ltd.

Debtor 120000 Gross sales 820000Sale return 20000Gross Profit 200000Net profit 120000Operating Expense 60000Interest 10000Tax 10000Current Asset 320000Current Liability 160000Fixed assets 400000Debenture 200000Opening stock 80000Closing stock 120000 Compute all possible ratios.

Ques2) Following information is available from the books of Rahul ltd.

Return Inward 50000Cash sales 70000Gross profit 265000Net profit 135000Fixed assets 380000Current assets 275000Current liabilities 115000Opening Stock 65000Closing Stock 95000

Opening Expense 85000Interest 20000Dividend 15000Tax 10000Sundry Debtor 110000Bill receivable 10000Debenture 140000Compute the following ratios:

1) Current ratio2) Quick ratio3) Interest coverage ratio4) Opening ratio5) Inventory turnover ratio6) Debt equity ratio7) Average collection period8) Return on total investment9) Proprietary ratio

Ques3) Following information is available from the books of Ashish ltd.

Fixed asset 450000Gross sales 1080000Sale return 40000Cash sales 40000Gross profit 210000Net profit 105000Operating expense 68000Interest 22000Tax 10000Dividend 5000Current Assets 340000Current liability 160000Sundry Debtor 120000Opening stock 110000Closing Stock 150000Debenture 140000

Compute the following ratios:1) Current ratio2) Quick ratio3) Inventory turnover ratio4) Gross profit ratio5) Net profit ratio6) Operating ratio7) Fixed assets turnover ratio8) Interest coverage ratio9) Return on total investment

10) Return on equity11) Fixed assets to net worth12) Debt equity ratio13) Average collection period14) Debtor Turnover ratio

Ques 4) Following information is available from the books of Star hotels;

Gross sales 880000Sales return 80000Cash sales 70000Net profit 120000Interest 40000Tax 30000Dividend 10000Gross profit 250000Operating expense 50000Sundry debtor 85000Bill receivable 15000Stock in hand 145000

Compute the following ratio:1) Gross profit ratio2) Net profit ratio3) Interest coverage ratio4) Operating ratio5) Average collection period6) Stock turnover ratio

Ques7) Following information is available from the books of Aditi ltd.

Gross Sales 720000Sale Return 20000Cash Sales 60000Opening Stock 65000Closing Stock 85000Sundry debtor 75000Bill receivable 5000Gross Profit 210000Net profit 140000Opening expense 40000Interest on debenture 20000Debenture 200000Fixed Assets 360000Current Assets 280000Current liability 140000

Compute-:1) Current Ratio2) Quick Ratio3) Debt equity ratio4) Average collection period5) Gross profit ratio6) Net profit ratio7) Operating ratio8) Inventory Turnover ratio9) Return on equity10) Return on total asset11) Fixed asset turnover ratio12) Turnover ratio13) Return on total capital

Ques8) Following information is available in the books of Asish ltd.

Gross Sale 750000Sale Return 20000Cash Sales 60000Gross profit 190000Net profit 130000Opening Stock 86000Closing stock 114000Sundry debtor 70000Debenture 140000Current Asset 230000Current liability 105000Fixed Asset 285000

Calculate:1) Current ratio2) Quick ratio3) Gross profit ratio4) Net profit ratio5) Debtor turnover ratio6) Average collection period7) Debt equity ratio8) Operating ratio9) Fixed asset turnover ratio10) Current Asset turnover ratio