angers reaver ara ta Peet arqard faery ts Preven 8 Bra Rs rerig 923 tu wee ety sauawalvan what tee atresia a ES 3 __ (Ratio Analysis) sega feet a em # a gfe nce seule en Fer fa ae #1” a fet we rete to ee 1 a EIA wee wom Sara cde ented argent rarent z ar afr (Callin of Dis fern a ogee eg aoe aT ear By ean ae Ppt BORA (Comparative Stady of Ratios) 57 Fx eel hon al bad aqud tu aa dant soe spat area ait 8 geet at ard 21 ‘Sof att ma ett 4, sega a1 Freer (Interpretation of Ratios) fn 3 ou bet oe fe squad farm (OBJECTS OF RATIO ANALYSIS) xen? sen ers fer frat 8 xs eat Bere wT serfs eH acca lames nets rye Fee fe feet Swe Beye A eee froin veo eat cefen ee ioe # bhai 46h red | SURt Fk frat ter @ (EXPRESSION OF RATIOS) 1. muertos fewall or fey (Amabss of Basnes. Acai) — 702 ® . a 7 im Bata ae See (hav kay kort ei ae reed fete sete | Eee es t mare 8 agate wud axes fom arm 21 3a—ate ft aor A SE aqua fargerer Bt NE 2 en a atk are a TE SOO pt ge arORTANES On IT we rat aan feet ses wet gece a fae STOR TS TE : : en gard FT Frere 3 afore rer a weet greed @ vara Hate & fe a fart a 2 5 Fo Ga Hom fer TH acre nf eH fee a a ee eT SI pea ed eS TTT aon Suonenfaim evar gt | Sano anette aterm ate ar ana so es wr 2 wo soren—achr wi og & afer ET ‘ TEEN tet er en rl mm ge ere et roe ew eT aoeaa 8 Pr ey a ara Hem fey gar Frese st ere fates Hea ee eed oe ETT cert Ba Ss oe ge STS ae ae ea TTT Ft TTA hy set aes ee eats HEAD FE SIT FATT at Seer ora eed RTT STE! “5 fap oh aes dre agar re —agee frroen 3 te wa et faeces a safer ata & Teed 2 refed ase F | ae ee eh eet oe saber 3 ae fee ara afew 9, eet fea ah 2 antares Pee tee ee 3 ge oft ar are et Far ara 8 free eres Peete facet 3 cite wed & sre we arefea segura 3 were oft aa &t wet 21 ae Ries eS age St Ge ST Bra geese & fea wt a 8 cee areas 2 es 1, Sera is fea ar wees argu & sre 3 ses Pe wee a et ‘ea eater iat ay eeraTet ET TAT Tea | STS STS aS Paes Hee FT eels ema) ‘a: reas @ esd React ore ates sts Sora? 1 feria aqunt/aeier squat st wise (CLASSIFICATION OF FINANCIAL RATIOSACCOLNTING RATIOS) acy fr real etal 8 area eh ee agra Pedoe wt EAIM | Te eatay aege ar eee arent wc PARI aH feat eT Tea ‘tin seer a aogd fort | Anas we af ees . = ‘eed eee eels mera ee ey Se Ee RE et | tae Sg gee at ge 8 tng PT Stee me ag & face wee wt age | cca) ter we = a ay seme arrera Paver fh ot aor TOT FS (9) wer idity Ratio) ? TLE LOGT TE aA orae ee trace eM | 6 ers Yer er ar (Lager son SO) Perc mcew sch eT Gee TTA Tah | oe ae ete ag cr tao) Ra 7 © saverear sare (Profitability Ratios) >ae caquipry RTOS) et 6 eS eer ETE UG Soe ee a oT VT - Wage en 2 For reat Rati ae on eh a Te GG al an ate Th (Working Capital Ratio) #t Bea qT ST arg ti wa fre at a a « ce 0 fet eh ee So Hf Fd aye 2 Roe ee or woth a ole ct SR stration 1. ; (i) Preifean erat 8 re agra a eer ae From the following information, compute the Current Ratio “wy ete (Curent Liabilities) 8 5 ye tie kia mew NA =i : iy Pe gerne & ane we ae aE Se Calculate Current Ratio from the following information Rs. 2,60,000; 'BI¥ (Sharebolders’ Fund) Rs 300,000, S58 T= 'm Liabilities) Rs. 1,25,000; P#@™ (Investments) Rs. 150,000 | © Concu pain ooh Ama ® urrent Ratio = Carrey Dabasies ~ 200000" > * ‘Current Assets = Sundry Debtors + Prepac Expenses + Cash Hast and at Bank + Storer Lmesimeass + Ivesares _= Rs. 2,00,000 + Rs. 20000 + Rs 6000 + Rs 4.000 + Rs 80.000 = Rs. 400,00 Current Liabities = Bis Payable + Sundry Creaton « spss PSS Res 0,00 + RS. 80,000 + Rs $0000 = RS 2.00000 (0) Total Assets = Fred sets + Imesimens + Cues ASSES .5,00,000 = Rs 2,60000 + Rs. 150,000 + Caress set Current Assets = Rs 500000 ~ Rs 410000 = RS 20009 “Tua Asets = Tal Listes ceca COPS) 1 sparebokders Runs + Longs Labi ee 8 ve et re ed fo eh ae a a en ae OE vise of fom eH (Unamorised Portion of Discount ot Loss on Issue of Shares Debentures ot ced in Gare Aes) (2) omnes ed Spares A te is fe AE Co) SUCRE (art nen # tk eo 8 Le Rr Oommen te cot mete sa ee te teem es ts Se srk aT Sd eat eT fe wees ae ge a ee et ha rae aqme coin de ard eft meee kere eT . ane nea we eer es apie eee Assets _ RS Bi2:1 ” Current Bauo = erent Haw ‘| 2 Care ge wre wT ONT EY te rag (Ai Tt ai), EL = Po> arn oh rea TGA ee Aes agve Te PTET i ieee rea a a= TAAL oat, 9: HA AT 121 on caee fate aretha | em ser ah er wn re re we TE eT A= art § arg aes sono FRE Ra aga. es aT 2 ee ee a 1.00000, @ fat ve weber GF 52,000 HE Sea TE ATE TS BFE and Liquid Ratio is 1: 1, Calculate Value of laventores. Given : Current Assets Rs. 1,00,000, Inventories Rs. 15,000, Prepaid iy ee feng Te] SGT 4.5: 1 eT Se a ga 3:1 21 a eS Expenses Rs. 5,000 and Working Capital Rs. 52,000, Calculate the Acid Test 12,000 ae @t Te ere a Sf aa X Ltd. has a current ratio of 45: 1 and acid test ratio of 3: 1. Ifits inventory 5 19,50 000 39a, afsreT EM 1500,000 FE, Fe is Rs, 12,000, find out its current liabilities. AT 3 75,000 Fe, area 900,000 HE afer TIT TE ‘Kanpur, 2011, 2009 and 2006, Agra, 2009 Fr.) (ii) ve wh a re argu 4: 1 wer ees HED S18 122500 TRH IS 50,000, Long-term Debts Rs. 15,0000, Be ae Ge a Te TH ga A SA HT SAT Z i Expenses RS. 75,000 and Working Capital ‘A firm has current ratio of 4 : 1 and quick ratio of 25 1. ssming pao tories are Rs. 22,500, find out total current assets and total current ‘wears 100,000 F¥e; aT HEH 40,000 BE | FATT ilities. . (iv) BET HET 3,0,000 ET TS ee 1.00000 HCE | FA TS IT Assets Rs. 1,00,000; Current Liabilities Rs. rf a eS ast en nm Tmo Wok ou be eet at be gs = BANOO (6) Uw apt a aq, wate 170000 FA 1 gen way at TAT SA nt Ass — Inventories ~ Prepaid 5 Of a oe Caleaiate is ogo — 29000 =e 390 250 and Liquid Ratio sO Ges (iy eta ee arg eg il Ming: es Ler se wed une wer an EEE 2S : (© Lud Ase» Curent Ast — Investors ~ Prepaid Expenses ee = 100,000 ~ 15,000 ~ 5,000 = Rs. 80,000i Ratio) 7 aque @ ‘af tio) A tesa ee am ae Ringe dire ese Absoh aid Ratio = Abia asi ce anate tert ag arinagetat reat ~ Beak Overt a tray rE IATA ( yea ets des 2m ag ated Bt sit seqara ferfera Pear svat ta ‘tasy’ a ‘vee age Se a 2 HR eT wet aren 8 F5 er eT wea Hee arse Pr rt ge SFT He vay aa Fara ST aT t— _ _ Cash (inhand & at Bask batatio= ae @ fet tera argue a eres we ae Frere Sa ae Sig arate gee: Pee Se ‘mopar oteenttseme fata {ebny ial ohne estes aa ve test se Re UY crime) FT ITEoa a © ae a ea dines #1 9 (Balance in Statement of P.& L.) 7B7-A (Debentures) ) S000 fate orate 37 (Trade Payables) ae ‘RH AH (Oustanding Expenses) oe + (ii) FT 3a GH (Equity Share Capital) aoa ‘Waa Wa SWE (Reserves & Surplus) aia 12% 3H (12% Debentures) Sree ‘aq 24a (Current Liabilities) joan area A (Preliminary Expenses) Solution. ee te qeiewe aS aaah 8 dr A te tw Ut eae ‘ese Peis aie le es Fee ora & ore a Funds) 44 3 arderce auc % sere SOR STE = See 0 Dt = gS - ES 0. Longsterm Debs = 1286 Debentures = Rs. 1000000 ‘Shareholders’ Funds = Equity Share Capital + Reserve and Surplus ~ Preliminary Expenses = into Son 10 = AOI 2. wafaea ae7UM (Properictary Ratio) —M8 SITE UAT ‘eee ge eT roel gles) Hee ga Ne EE eH eT ae arsed fre are tS scare wT ga we eat Say fa ato 1 e 5 ah te at 8 arara stra 5 ww 8 8 aes ps ee A ea og Fe este aati Assets) 2 ‘ae et ees en me we rs we eed SCOTT (iy ters oh ara a} re — Calculate Debt-Eq rom the following data : irari Taft IEF (Fixed Assets Ratio) = sae See SM Longerm Fad) #8 ee en ae Se “fa ae gan 8 oT Pa he aA a Ta a a ee dares at art bet a fom See 6 Net Fixed Assets yo Far ae aga ae we freee stata ih aera EEG Fi ; Fixed Assets Net Worth Ratio = == 4 ASSets (afer deprecation) Proprietor Funds ae qT 118 ane et Ora aire ae SH 067 & aE-TE to ate ea fers aE | 5. ah afaratar arya (Capital Gearing Ratio) me aqua feet mraates tay A aoe aie at ae dea afta aed eat a gates oe hw ae ot aa Share ast oy fewer fem a #2 Ga fae aS aa zat ‘ea agora at mora bg Profs ae Farr fea om Z (Biity Capital + Reser & Sart) Cita Gearing Ratio = sea Gat asec agua 18 a Wa Gat sen mer (High gearing) 3413 site #3} fret eet (Low gearing) 1 721 sare a ani feta ad iS eat ee ee 8 afer eh cen eae eRe Fe at a aes Eg ea TT 2 arr me BT (Trading on Equiy) METAS E fre efron 3 cH fee arra are Ga ges Se Se Es Se ats = Sbaeholders Funds ad Faas arr araarr S ant hae hte we we ae eS mt ary Ratio = Saran Wed saree Sree O71 ge See ge GT CT Pe ree ST ated Tod dee ee wa ee - Ba afea oferta EC 0 Toal Assets Ratio) 78.8, fe (DeteSerice Ratio Or Interest a eed es ah a oS oad Conger Ser hoe ere eee eLE TSE aa eee ee PLS Speen) Fee fe tea dene atts ove teats rt te WR aT F a dey Oe Cetcnent) eH RRL AT 1 TE TS YS STS UH are oe rape BLT) 8 REE TSS STE ST SE IT RAamaen gaeereat ee DebtService Ratio or Interest Coverage Ratio rotten eran sat ar 2 4 Ratio = Total Outside Liabilities 4 Income before Interest & Tax ‘Net nse before nest & Ts = Interest Payable te re rat a ee AMT: ware 81 6-7 Ft HEA IT won 278 8 yg a oe =a tee eck NER deren ect & exter, eo Re ae GRINS ST SEE Tat a cf 8TH F208 axes agra ser ae a wr after Aa ee ee dp fe cee teem OTST Senfen see «4 eH EW deem & on joo des TOS mo 8 veer 7a Sa ae ee 7fe ad fh oat (Turnover Ratios) #1 TAFT: $2 MR (g san ya ead efor ard We fst df Pon BE ches sales) 3 Sefer H fad whe A fates Set ar feet are ard Cummover) Tart] esd are Fran Siar Sr we le pT Te aT aT Aes ROT fate Fa are segura, sf wa fear ard Pret ar tara er | 1, EE HM IATA (Stock or Inventory Tunover Ratio) FH TT TT, Tee aT oer ae Ate es wt eee TT a af a aR aa #1 aie 8 sa oath & shag cag aw wr tar at ar 81 ada Haat fe wea & fea a rey ot frutte ax fem wa 2, gat Sales } BAK =... Times * vecags Stock ‘MLHTE # ATTE (Cost of Goods Sold) 3 ET Fret waa at Tt B— Cost of Goods Sold = Opening Inventories + Purchases + Direct Expenses = Closing Inventors ; or (Cot of Goods Sold = Sales ~ Gros Profit or ins, ie, Cost of Goods Sold ade + Changes in Inventories + Direet Expens Jest 8 8b AB ‘emf dou ey aed A a Freee ge MOM Nee aw i abe 8 ae tem ay Marin fen a weep em ce) — We sr aa Bi fark fay en a Pot a chases during the year Rs s arabes 637,500; Sales gt Se aT ROPE 295%, RE FOX 7500, aE 1 00,000; Gri oo a SD Se 2 Org 2,00,000 84a; wae ft aque 25%, shez =e Sooo FT) les Rs. 2,00,000; Gross Loss Ratio 25%; Average Stock Rs. 5,000 (Kanpur, 2008 R) Gv) area eft 29,000 Fae wa 242,000 FFE FE 3.25000 FFE: FH ATH wt A HI 25% | Opening Stock Rs. 29,000; Purchases Rs. 242,000; Sales Rs. 325,000; Rate 5s Profit : 25% on sales. (Kanpar, 2008 P) 9,00,000 ae; SUT FRR 3.75000 FE Para ATH 7500 FE set TAG Tae ATH St PT HSS | $s. 9,00,000; Credit Sales Rs. 75,000; Sales Return Rs. 75,00; lock Rs. 90,000; Rate of Gross Profit : 25% on sales. Gonis t ©) Stock (Inventory) Turnover Ratio = SAGES Z = $304 s8tmee Cant Gass Sold = Opening Sosk + Purchs = Con Zann» 6500-0 R80 ching Sock 10.00 + verage tok - Opsing Stok,» Cxing Siok , SOHO YARSSD = Rs. 131,280)5 on Sales = Cay 5» 100 = Fe 0 = 2m of Goo Sold Sait Grea Prete = 310100 - 30000 » 2m » Rs 200000 Average Inventory = COS eer — 20000 _ as 25900 Average Inventory = (Opening Invesiry + Cony ier? Let the Closing Inventory =x; Opening nveniay wine = + 1 Se Hence, 742515 py 25000 3.x = Re-S0g00 = BAS eg a2 Ong oer “Thus, Opening Inventory = Rs. 14.285 + 15 Tesof Re, 25 = RS 35705 IMustravion 8, PRae Fatig % Prafettas Tee Pee 8 x ae! ae ST aifae— From the following statement of Proft asd Loss of Vibhay Lid. Calculate Inventory Turnover Ratio [STATEMENT OF PROFTT AND LOSS sexsi 25 —__ Fon THE eax ENDED ST MARR Poe ino T. Revenue from Operations IL Other Income ML Towa! Revenue (1 + 11) WW Expenses:A 38 Company on the ig tors or Payable Turnover Ratio) — Ware: 4 Boer ae ate #8 2a Aen wea Gop aect az eh & G1 a Fa AT (Total Payables) a AMAT e | AAI Fem erro ee op ye eons fe Ser fy Te a a spree web ge fre Seem a aa SGT ae ‘ates Tara ae ‘Sra sna aT, BuIA (Credit Purchases) TH FA 24 (Total Payables) 34 sary ete ar #1 Fae HT Fe a ma faa sat o— hases sditors + B/P) WP) + (Closing Creditors and B/P) z 5g REE afm OTA a ae enh a A OE i & ten a oa & area 2a Fach aa are aaa aN & I HO a feo a coe 6 fm a2 eae ored ie vray Fon OE ae te a ge a ears a 3 ae re HF stron sp saa (Acrage Dabursene ; 1s fet af 8 fem a ter en arent ae ee a aoa ‘sre eh ara weet erat #1 To freon rm ea (Average DUNN tat wt pa em fam ae fn TO Velo) urchanay * N° Months oF Weeks o ae rele. Dongen ites don 20 em an A tt sta at ae aa zn or we BA shen ae me aye fete 8 fom te 9 Par ery er & Pe spik adh Ta fa aA aia ah atl ST fem Par adr 9 Prfatan seem ea tr 5. rates ant & aaxy NS ee mE Te rm abet eres ay ox) From the following information Ratio and Average Payment erod (2 seen Tastes Tumor z 00000 150900 $0900 sop00 ‘7000 S00 35000 fava (B/P) 313.2015 Solution. “Net Credit Purchase Tea Parcae ~ Ca Parcs - Pach tums = 80,00 ~ 00 - sam = Rs sn.0 Average Payable = {2.000 + 45.009 = Cam = $5900 5000+ 10509 «goo 20m 1050 Credo Tuaoer Ra = NSU ae = $2 oso ‘Average Payment Ped = xa Pec * = HS = 2mmSS A Erm aa Creditors turner foe ea 2013 one ie z z = a ours Ch 150000 Solution. (Creditors Turnover = emesis one am $0 ga 20153000 «55s ‘afé 2015 Felgen sae hed Pet Sey a0 va v3) ert, 33,333 F¥4 (233333 - 200000) # ste ser Rs a (RPT cite ee Mlustracon 18. Frater Penta staat & aman ge a ates gras sate ae he sues = $9.0003109 ps, «5,000 ‘ % On the basis of the following financial data calclate the Average Payment Period of the firm : lems “Total Annual Purchases Cash Purchases Purchase Returns ‘Trade Creditors Bills Payables Reserve for Discount to Creditors “4 360 5 a AMPA | (Year is assumed of 30 days) Solution, Total Payables _ yg of dys ina year ‘Average Payment Period = yer yer PURE © NO-OCON = = 1075 a "ong Nets + Bus Payables 1 Tat Payabies = Trade Creditors + Bis ie: = Ba + 0 Purchase Returns *Net Creat Purchases = Tal Purchases Cash Pureea aoa tg A Wea rece eae Seat eae Z Net Worth Turnover Ratio m Nel Sas we Cag Pb Sar 8 2 eg OH, ge wim ct Worth or Share Stes ated 8 are ert of Te TH, aT HT ore ate gen Salada aa ected ee secre seo a me RET TT SEF feet e141 8 SF tn peg YS St Sea a eten wfeer at pyran ee tetemeny S Rogeectenait in steel ora 2 ee ap Te (a Cop Tos ra) 7 08 fare eos) 3 a at 7 im Pamir Wa re a} a) a BL eyecare eet 8 of free Arent De yw | Said apes Fe oe oat agen waivers wT #1 Total Capital Turnover Ratio = C2 ales Ne Sa gah et med SEM (Fined Assets Turnover Ratio) — FH FG ge : coal eee Srr 8 wa raN ee PorE mae (Adequacy LSM Wma mR | pitta Gat ators gu dient ee TG, aque wah wert & ed eS TAT ot ee aT #1 A Te feriten ot at arden ara at at wat 2 Sere eae AS ETA aT aT LAH TH TL SE wT | er 4 ce Pa wanderer ga wea, eh wee ara igs or Peete ar fe aT A rela er H fd tI (Cont of Sake) 72 9 @ mew fat t fi or Net Sales ree #40 7.@ tt etal arden athe ages Ss os Fined Assets Turnover Rata = ee epeaiton: fot a vex or war eur ar meet Santa aie Mstration 19, FAN fo 131 PEREAT 215 Fe Peas Fat ane & aH sage wer affect AT are te Pa Following is the Balance Sheet of Vibhav Lid. as oe 3st Dec, 15 ‘VIBHAV LTD. Sieh denst ere eat ond ga at aft meee & wife tet ded t (®ALANCE SHEET AS AT HST DEC 25) ‘pareh eel 3 feb ar eaves ae feet We areata ANTE FEAT & | — 6. Br] FAA aA IITA (Current Assets Turnover Ratio) — FH FIIs ¥ HA Fs sted eT pre Sere ee Oe eae ae A at BS Se 8 eae a eA Py faeatetta a aT aT PT ST a Current Assets Turnover Rati = Cos. of Gos Sod or Net Sales See 5 dena & fresh a eee wee aye Part 7. evista $i smerd SUM (Working Capital Turnover nat) aan « eas a en Fe em 9 ach mtv Ey ava ere foes TAS Se eae a tke Gat ay arta are fea er wre a ators, ae teat #8 a act ah wera arg gah gf ca WE | FO OTT 3 & fore Faeafers a a im eat aren ‘Working Capital Turnover Ratio = C2St of Goods Sold or Net Sales.— 16 TTA Fen 8 x tm Sera THe ae | eH WH (0b 2 fe ae fame or fT ATT Sarita eget eT gga FHT AT STAT are, ee, spre eee ek eer seu Fase eater TH 30a a ae ms 8 vo ard | eres Se OT, Te, ew TT w es aH MCAT ee ES “it aor tq | ee reed ae ove aH eT ene ao seared aT 1000 9; ATE eae 250 1000; Gross Profit 25% on cou | 1 Fe eS ee SSPE Qa Pam og tnt oe ae Ga nae a ee Se © ‘Financial Expenses Ratio = “= (vi) Non-Operating Expenses Ratio = fons sqrt 3 ara ft sense prem ed ory ST sc Seered rege ced we wT a oat (, Free AT (Operating Profit Ratio) — afar a pes anne Rak) 1h Han oat ere ee STO ape Fame se ea ata fer et @ | era ae Bey el em mares Farah ea HEH AT ATH 1 TaTET TT fete wT TET amit () era ATH (Non-operating Incomes) —ta—Fafri as, ae ween wefan eH ae TS, se | al (@) MRA Ba (Non-operating expenses) ory FFT >TERT eal tet Working Notes: (2) Net Sales = Tal Sales ~ Sales Retura = 10,60,000 60,000 = Rs. 2000.00 (©) Gross Profit = Net Sales ~ Cos of Net Gooes Sod = 10,00,000 ~ $,0q000 = Rs 200000 (1) Let the cast be = Rs. 100; Grass Prost = Rs 25; Sais = Rs 125 Cont of Goods Sold = 1 x 600,000 = Rs 480000 a, eters 8 are ore wer er ae ta a ‘ens we aren & | ee arg A rere eg Farafeftrs ae a Wey five ATA x 100 Operating Profs ash = OP=rmiag Pott ; ee HO =~ Net Sales 1 gu equa fern astra er ree ee a ae Gross Prod Ratio = SESE () Let the total sles tex eto oom Cah Sales = 20% oft = 020™ Gra Pt Rat «SESE 9 _ 398,000 = 190,000 x 100 = 209% ‘Mastration 21 (i) ear gan tHe ge are PTA 15,00,000 FFG; Bitar =A 1,00,000 FG Fat 20,5000 Fe, Fam MT 50,000 BHR | HTM AE Ta AE Given : Cost of Goods Sold Rs. 15,00,000; Operating Expenses Rs. 1,00,000; Sales Rs. 20,50,000; Sales Return Rs. $0,000, Find out the Operating Rai. i) irae aT 90%; twTETT Bra 94,000 TG; FRAT 6,00,000 BIR Fawra aE 40,000 Fae, | 3 AE ATE Operating Ratio 90¢6; Operating . 94,000; Sales Return Re. 0,00) Pala he oo cof goods sold. (Kanpur; 2410 (ai) rarer gare 75%; FF 6,20,000 Fe Faw aT¥R 20,000 35 fH EAE 2 ere 420,000 3au | Ace or ta ara Bf a Operating Ratio 75%; Sales Rs, 620,00; Sales Return Rs. 2,000; Cos Goods Sold Rs 420,00. Find ut the amount of Operating EXPE | Rie yy, Solution, () Operating Ratio = £08 of Goods Sold + Operating F = 20,5000 ~ 50,000 = Rs 20,00, (1) Let the cost of goods sold =x mea Operating Ratio = C2 Goods Sl + Operating Expenses. 19) x 20,00 » 35609 Operating Expenses = Rs 30,00 ‘Mlusiration 22. ester gral 8 oes eee see st From the following informatic Raa °° flowing information, caclte Net Opaag Prat ea 2am Pee re my wrest ae sen wre Pet as Re I Ne Ong SF mao ve oer ea saw ee ee 15,00,000; Gross Profit Rs. 6,00,000, Administrative Expenses Rs. Selling. and Distribution Expenses Rs. Lon. 50,000; Income from tnvestments Rs 80,000. Soa Sotaton, © Operating Prot Ratio = Obert op 1-298 ~~ Working Notes: Overating Profit = Net Profit + Non-Opermting Expemscs ~ Non-Operating Income = 3,20,000 + 30,000 ~ 15,000 = Rs 3.35.00 (©) Operating Profit Ratio = OPS Probe 109 = 30908 00-28 Operating Prot = Gros Prat ~ Amsrane Epes ~ Sting stnbvtce epeses = 6,00,000 ~ 2,00,000 ~ 1,00,000 = Rx Acqo00 wravon 2, feet wel 8 x ee TUE ST @ Soe tit Eee a a ER ar 88,000 Ue Ret 400,000 Fe 'Net Profit Rs. 88,000; Sales Rs. 400,000= (Gi) Financial Expenses Ratio = ‘Baap Fapenses é: () Otner Non-Operating Expenses Ratio OS th sat TES * 100 = 26.49% re fat one we co-Opeating Exposes ~ Non.O aig faa 00 - 30000 = Rs 315000 am A avereen fea 3 ote @ ye arm sai Pea Te Ra ree wee # ie encom Oh nee ge 8 Bet Ae rae aT ar Ft a Fr aes Go age fee a 1. faafen 1 or (Retr on Capi Fabrice fh er ens me a ah a en NONE Bi ‘ve arate erect ten # ae oer 8 wa re e a Fm 2 Brevi fe wg TEN Natasa ce = —Net Profit before interest and tax Profit before interes and tax Gross Capital Employed (ital Ass) <1? Capital Employed = Net Profit before intrest ad, op Net Capital Empoyed 1 beet te 3 eae ae oan a fee fates $9 wee ages 8 ts ahs 2, meres fender (Trade Investment) AS 24 Ue Rea Got 2 owed ees wed adh et 1 aed aed eee ata Wy fee we AER me ) eer 21 sree ete & swe fee ne Ae oe fe ) wearers fe (Nonny Imeem) S AF ft oyed) tat ante fem se itaiadaad are ey ee = eT Ae on Proprietor’ Net Capital Emploned: _Net Profit after interest 857° x 100 = Proprietor’ Net Capital Emplored Fears A ae or ae RTT RD RANT (Net Capital Employed) 88 64 SAR a ce a eet ge Na fe yaa ge wet seta 2. me i ee (Return on RSID CEE ay gt 8a TTD TE pratetard eT Saat ee eee A em fear et= (a) Net Profit after tax = Rs. 250000 250,000 x 100 Net Prot before tax = :50090 > 100 Mstration 27,31 78,2055 9 foe 5 ants fag aes orofetern lance Shot of Vbhay Li. as at 3st March 2015 : fetes qa —tearg fata, te anats har te oe a ae wet ae Porat fee AE 70,000 Fe todas aS aR a SS TTT IR TH 2,43,000 BIE a | TRRT BT 40% By OILS 3 ig Paras GA ‘after Interest and Tax forthe year 21415 Rs. 243000, Tax Rate 40%. Return on Capital Employed forthe year 201415. Solution. [Net Profit before Iteres a5, op Return on Capital Employed = NPS Eined = ARR «100-2998 Aree Mrkng Nae ' Caelatin of Net Prot before Interest and % 248000 Net Prostar Interest and Bt Re ey my pastor seen: a eee Oe 950 rest on Debentures (12% of Rs. 800000) ‘$01,000 i) om (>) tote 108 of Rs 70,000) reo News ae be‘ash Equivalents) Capital Employed 9360 x sate 230% 100 5 4g ae orgie Fare atts that 8 onary + Ss PH ara # wer are aaorh & ote a ger ot aan a ates at amy ada ara mae a aa tT Sr ret ont ate ea 2, 644 WFAA IFT (Earning Yield Ratio-Ey py concer ge TO ger sna ait st oanty eat 2 eae emer ae tao seat at fer eu & BH ara 8 sar ew ae em enh pe a a0 2g frrafetind a a Pea ae pa : eld Rae EPS. Expaiig Yield Ratio = sp Price per share * 1 3. aft tet eae (Dividend per Share—D.pS)—ea=e-=am Somt w a t ates of se vent fis all aft ote feed aa affe act # ais 8 xz ae 3 ee frat @ Ps merit af of fsa arate Stee aed gs facta mee eed atch eo rT & fear Te aa a aha ote anata WP sw < = Dividend for Equity Shareholders Biyidéna Cera Number of Equity Shares Fe aga we ma @ fe AAT steraftel wt are Harta S ey 8 feed ote ofa rafea at 78 @ me area fare ates Gem aca a arm Sree & ee eT 4. em Seg (Pay-o isezue ore ate aerate reed gua bene eee need S505 aie er ate ame a feega ae tera 22 me Oa ween sfren saaeT Eee = ex é Dividend per Equity Share, yout Ratio = : Feenstra seh qc aera a wd we wel Fe Qh ae oar fear rf tan) se erat 8 Sahat ed Peary er CoN EA Be ATO A Law Pt Rai) Ee espe nape nan emg oS HC Sy Eee aah Ser a ere oe et go() Price Earning Ratio (P/E Ratio) ig Verena Tae pe ee Saeme fairs aqui & ufteer & snafta di arte fears cae (LONG ANSWER NUMERICAL ILLUSTRATIONS BASED ‘ON CALCULATION OF VARIOUS KATI05)e-senfe @ eed ea Bf ened age Ae oP rc a fet fre et Ra er oN A etd ara 8 eo &Avege Recher eT SUT MEH 3474 (Payable Turr tio) seme Ks 306 "25:1 ui Stock and Cost of Sales Ratio = COM Oe aes 7 ey ioe Ry atin Sie (iv) Payable Turnover Ratio = Net Creda Purchases Re “HS (v) Average Time of Payables = meee. io = IAM 565-2908 Working Notes 1. Current Assets = Cash + Debtors + Stok + Prep = 6,00,000 + 3,00,000 + 200.000 + 10.00 = Rs. 12,00,000 Mlustration 32. 31 Hrd, 2015 Pe ls we fep Aedes ‘The Balance Sheet of Vibbav Lid. as at Sist. March, 2015 was as follows : ‘VIBEAY LTD. ‘AS AT SIST MARCH, 2015) (BALANCE SHEETTonal (1 + 2+ 3) 6.0000 (Curent Ratio = CUED Awe a= 6 8 es (pp ovrns Coen Pe = NO Renae ys : ae G © ccna aes q = Ds a Gorka = 29-2 or 29 ays poe 1B 6 A Premera «Ratu ats (8) Dee-Eauiy Ratio = LOE ry Z 250006 rs Pate + Co : de = rR CTT Sa Alternatively: Me serve 0d SUS pee . nes Proprietors shits Ratio = pyar Gr rats / = saa S088 220" = Tips = 141 Proprietary Rao = Sebo Fass 1590 + 220, LEE «98:1 = Smo. Sone LMastracion 34. 32 8k AAA sree tan AGA = Te G2 FSA ST SGN, i) HH aE TATA, ily AAT STITT UH (iv) Beth ‘ot arad sega ayy 33 ea aT ATT 3.95 600 aR PRG Te aaa 1000 €Y; Fra aig, we 17,800 BIE | pperationsy * ~ BELA Be 8S EO ey ao Cost of Goods Sold _ Rs.3,95 600 (0 Soe Trev Rao = Fee ES FSS |g term oan (8) Det auiy Rao = Debt ongserm ~ BE 87000 Re 125000 Rs. 2.12000 _ -RSTTS 000" Rs 375,005 = 0°57 1 (1%) Working Capital Turnover Ratio = Working Notes: Long-term Loans = Debentures + Loan = 125,000 + 87,000 = Rs, 2,12,000 Mustration 28, 0 ed fo % aaa & wea Prete aga A Scr a oft 3 mr, cefet 38 fe, ret a af 9 BG, Wa ATT ST 25 ferret 31 few, 2014 98 wae #3 aa a fy wea oI wet dh ah a aa ener crete @ 1,000 sr ates er ae 25900 1 fa, rer, aan cafe she aera ae Free 1 _ seas . _ (i) Sundry Debtors Debtors Velocity in months = ade Resenabies Because, Closing Sock = Opening Sack + Rs. 1000 BS 00 _ py 7.95000 Opening Sock = Rs. gan0 A258 Closing Stock = Rs. 795,000 + Rs. 10000 = Rs $25,900 (6) Sundry Creditors : Creo Veni in mote = ASP « 2? -we Credrs = Assan Pies + Rs. 201,667 - Rs 100 = Rs 19187 Neking Neves: ‘Opening Stock "ercase = Ca of Goats Sol + Cone Ss RTE gan ‘= Rs. 12,00,000 + Rs. 8,05,000 ~ Rs(There are no long-term loan and (Avadh, 2013) ropnicior’s Funds are Rs. 2,40,000 and Fixed Assets will be 2,40,000 x 0-75 Surplus are Rs. 40,000 the difference of Proprietor’s abe sae Capua” “200 eereee 40100 Rs. 4000 = Rs. 20,000 —_—— Toa (4) Toner uo 2a ka ®) om Proper Finds | an ne | om = erst 8 ae atts fog dor an a. following informations, you are required to prepare 2 Bulancz tu a we after (Reserve & Surpls) tom ae safurent (Bank Overdraft) = “are APTA (Current Ratio) = WE GTA (Liquid Ratio) —_ ‘erat ama: Tat av (Fined AssetstoPopertors Fund) 6-80 4}, Soution [BALANCE SHEETns Working Capita, Working Capital is RS. 300.4 ‘80 = 15,00,000 x 0-80 = Rs. 12.00000 Reserve & Surplus = Rs.750.00 ~ (7.50000 We know that Stock Turnover = ©28t of Goods Sold Siete Aca SC Sat = OS Ge = 8100,000/6 = Rs. 1,00,000 ‘We know that Debt Collection Period (ia Months) = AVSrage Reoetables 5 2 Sales x Debt Cotestion Period ‘Average Recevables~ Stes x Debt Caletion Period bentors, 750,000 x 1-92 T LS Re 120000 ‘We know that Fixed Assets Tumover = Cost of Goods Sold © Fined Assets of Fes Ass ~ C2 of Sos ee ind Bareilly, 2009; Garhwal, 2008, 2011) t Gross Profit Ratio is 20% and Sales is Rs, 7,50,000 sds Sold = Sales ~ Gross Profit BB) = Rs 000 it = Rs 480,000) tions it becomes clear tht Stak 5 Rs. Lona, ,00,000/050 = Rs. 200000(Meerut, 2007) 3 crane & Fett i ear seq Peden wee RP fe aera rey stem tre fare used in the analysis of nancial statements ? Gre (Meerut, 201) “oyu feed nfs & aay om ear rae et ree Hea TT eT ashe srareyy argu as wera of aks ata Ratios are disease symptoms lke blood-pressure, the individual” Explain this statement and also deseribe th 6 comes segue ata 8 7 Ra Ane gS Pt oes STE a AT ‘What are the profitably ratios? Name these ratios and expsin return on Capital Rati, (Garba, 208) 7. Sears segs ea? fect war Foes at aprar ene | RS a ahr aig os wel rer aor wen ei 8 ‘What are accountng aos ? Explain its olin financial management decisions. Dest inc . (Gach, 2008) ‘sedgerter &h averfandt ary oer onexetion “fr & feweFree A ‘wif ‘management for measuring achievements in efficiency 104 Discuss. (Agra, 2006) cl) ere ey eee se fee sae aah SI eget 8 ra 3 aa sf fay 1 Use 0 measure (i) Profitability, (ii) Liquidity, and (i) SoheDo formulae for computing these ratios. (Agra, 2009) ay arta daha wea (SHORT ANSWER THEORETICAL QUESTIONS) 1, segue freer & ae am 2 ‘What are the advantages of Ratio Analysis ? (gra, 2008) What are the limitations of ratio analysis? (Kanpur, 2008; Robilkhand Barelty 2007, 2012 & 2013; Garhwal 20108) re See on ma mp9» : OME 28 Ae 2; ey (40% 21; Meera, mem era 2a) ance and calculation of Capt Garg ce a aera Prete ae sa 82 a n wi 3t by Ratio Anais 7 Turnover ratio? Explain any to tuo nat seers ear? gah eet A B87 = -— fn no distinction between Cae at AS = : me = = ‘and working capital ratio are coe and Se SSE -_ cath rom ste ee cele th pre me sss =~ ager reuse om) we ine) oe eat ratio for stock turnover 8 6 Oy \Fabe) ce Pret yo ee aed ed ECS Ey nao AN ecg sock ture wal HS ees6 isreaeen” (ate re) rar SEM WET ina ce shares shall decrease the debt-equity atin (True) 16. Ao see Ce we red yA Operating ratio is @ ype of turnover ratio fies ear 1 gf f(r inthe Blanks) 1 aque states cu saa & a4 8 sft arn ort ‘Which of the following i a satstactory quid (isto) I —- (0) BHR BE HE (None of these) 4. ya & fore se #1 Buying goods for Cash) : (a) sey 5¢qaa H sw (Decrease the eure rain) (b) ae Segara Hf gf STM (Increase the current ratio) (c) 5 Seq eg mot (Tae ee on caret at) () 9. ears segura avarh & (Price-carning ratio i wef to) (a) sera Set & Fee. (Short-term res) (b) 2teit if faPitearait & fore, (Tavestors in shares) (#) (©) rena 3 fre (Debenurebodes) (© B13 ANE FA None of these) Mea a a . (9 seearefa the over ear % erase ; Profitability oe gem mi) aa haga ca ae ate gerd ra $2 a entures ad preference sare, ee ats rr eta (Bread gars) ERAN Coe "5M sre sw @ (A tow stock turnover inet) (9) 6a safe (Over imvesent i208) () rife 38 efi (Monopoly stuation)(©) Liquidity Ratio (vie ern or (@ ervcreem see(¥) (©) Soheng Ratio (8) Proabitty Ratio (4) (Robilkhand Bareilly 2013, 2006) ayn ec" A (Return vena a (@) We aN Tee TA (Net profit ad capt emp erat @ TM (Investment and profit & dry el cf ere eh ft (Tuemover and capa exces ay ae 1 & ae (None of ese) : Ose @RRNR ete) ° SES osm, x erate 4 RSET ET “eal N oon, re pr eu 6 eg Rs © payout ratio is ) a8 oma fad 24,000 foe f we) Fa a0 i, iD) “MIB (7.5 months) Seabees,Fa Rhed 5 12,000 (Bohilkhand Bareilly 2012) 100,000 ¥e, 83 =e re 1 A 120,000 Fe, Fe 80,000 eR ee TER eae a ah oftee aa aga eI 00, Sales Rs. 80,000 and operating will be (8% (Agra, 2011) 35. fea de ge 0.05 # tea sare 8 oe fate Tae HI ‘0.05 and earning per share is Rs. 8, then market price of te 100 (©) Rs. 160 (@) Rs. 040 0) ‘Agra, 2009) 26, ft ai ese 3 wre, ft is 10-9 ee ers Sper aT Disiend per share RS. 3, Earing per share i RS 10, hence cidend payout ratio: () 2096 (2) FH 8 BE AE None of these) ‘obitkhand Bareilly, 2009 Imp) 37, wee iat twit 5000 fe He tare 4 a, Hae aT 25,000 FRA A cate ape qu IC Number of equity shares 5000, Dvd per equty share Rs. 4, Profit ater ax RE 25,000, then den payout ai wil De: (@) 40% (b) 20% (6) 80% (¥) vy ant fara (SHORT ANSWER NUMERICAL QUESTIONS) (@) None of these (Garha, 2009) sag UH ATMA (Current Ratio nd Liquid Rasioy 1 @ eae’ sega 2-5 7H ee et 1,00,000 ae, sare ie ah or AE! - 75 Mes and cure bites ae Rs. 50, , ealuate Curent en te Sn te Te aie a R300 a ce ahs 1,743.20, 000 Fe wer fee o me Site RS. 32050 25 Cre as Be eS (Kanpr, 20 ced a ST 2 TE OAT ST Seat pam efron, a care es ri eae et eo > 2s 1.00000 and id mes we Ra 40000 ud rent Ratio ‘Capital Rs, 60,000, Total Debt Rs. 1,30,000, Eneeeh ee, Stork Rs. 25,000 and prepaid expenses Rs S00, Caza be Carect (Robhised Bary 220 Ip.) (6) eto ery seq 3.5: 1 emer ge 2 1 Be es 24000 ER Be are] cof a wey aaah at war wife! X Lid. as a current rato of 35: 1 and qack ao of 2: 1 W be Sock = Rs 24,000, Calculate total Current Liabilities and Current Assess. (Agra, 2008) "gd Rao i125 times Clee te we a Coes ABE ESET (6) hate aj000 wk Ba ea TIES 1 RE TT 11 8 arg ei, eT EAA TA a ui Curent Assets of a Company are Rs. 500. Te HO AAO Tatio is 11: 1. Calculate the Value of Curent Labi ‘Bareilly 2005) © wat wy 35:18 He #8 ay ce ay eee ee Bees EE SE! ‘tir has current ratio of 35 : 1a igo ai of sd Ve of inet. Rs. 1,00,000, calculate Current Assets, beg ‘(Garhwal, 2012), (vi 62,000 td (9) yore 2:9 eta 15 te i 162.00 EL Stee et eh ea wT MATE Ccaptal is Rs. 1.62000. Find Curent Rat 6 28, Lua Rao 15 2nd Worn CLS ‘the valve of Current Asets Curent LADIES ST ay parity, 2008)epartmental store are RS. 162000. Cot of ses Rs 1,08,000, Uve expenses are RS. 36.00, Aa merope ewcaicry amcantng he fed @ are 108000 Fe aes Ses 0 Rh orto on eae wea eeeete et ea 87 ee O75 's 3 umes, Average Stock is Rs. 1,00,000, Profit earned is 15% 30.000 @ re esr ee aes comm” of pods sl ar ef at Fe 5 Re S000 more than te A sock meri Sis, sate en 2 RS ms 5 SS te dor sm id of Richa Lid. is Rs. 120,000 Ifthe Inventory Turnover is 4 (sre 8 Ben 90,000 wea & & sea TVR eee the ef the year 2 ime of hat te Deging Cac ¢ 6,00; re ses ‘inventory at the end of the year. Dedeors at tbe end RS. 1 afta epee 8: 1 et 70,000 eee sd TC a ae "a a a Q Rauo 2.71, Liquid Ratio is 18 : 1, Current 00,000 ad Tumse nc. ate eat of wg tiny Re 79000 8 een er 8 wt wd fe we aed ae Mg” Shes bie 5 Detsors Rs 156.00 From the folowing informations, ceva the Lmentory Tornoe Ratio for ec ning Debtors Rs. 1,30,000, Casing yearing debtors from the following umes % 640,000 0% (Agra, 2005) and Closing Receivables Rs. 15,000, (i) Opening Deedrors Rs. 160,000. sites ting af (Average Collection Period) 8d 3 360 fea & ge fretesn feet @ str vig sae a wt Calculate the average cotection period ftom the following dtas by adopting 360 days in an year (© FA Fame Tut Sates) % 24,0000 2H Dediors) 230,000 2 fsa fore & SEE (Ratio of ret Sales to Taal Sales 20% (Meerut, 2005) (1 Ber afi Be (Opening Balance of Debrors) obo 224 de au fae (Creat Sales during the year) 140000 fear are (Sales Return) “16000 sol & det trent tts ci 4,000 (Cash Collected from Debtors during the year) 4 sof 94H sa ed fem i ey ie 5000 (Provision for bad and doubiful debts atthe end of year) 0 etl Ses) 2 days apron, (8) 1725 a ff 13.14,000 £1 250000 wtf scans shan ee jo ro ae HET AR WE De Bal 05 Smt cafe Feercer org ore 2 ‘ id, sel their goods on cabo wet on cece The kway we been extracted from ther bots of casa or te yar Shes z 1.s000500 som0s00 fase araef (Sales Return) 10.50.900 FA THER (Total Debtors 313.2015 1350900 ara Ft (Dis Receivable 3.32015 som ‘vif aor 3 Ferg srt (Provision for Doubt Debs) 313.2015 1590.00 A BAEK (Total Creditors) 3.032015, ‘090.900 shee aqett safe at ven aif 1 —— 10, frefefea 2 aren aad 2a psipaboeeloesnnr 123000 1200 s,o00 66,000 ‘ris 2a Pat (Opening B/P) 20 afar 2 Paw (Closing B/P) 375,000 are (Purchases Return) (Kanpor, 2008 P) a Sotto ‘Turnover Ratio = 5 times. TTR sae (Average Payment ED) see Ni Fetera wrote rat ae oO fe mons) From the following figures ealoulae average pment pers ( z soon ‘Y4 4 (Lotal Purchase) ne 748 WH (Cash Purchase)ret ae & fire ra (Promsion for dscount on cediors) 000 5, wd afer «son P00 FW ae 500 ta S00000, Reserve 14 Sut Me son, srTent Lables Ra. Rs Det-Equty Rate 1250 ad Pretmcar Eapens, PO 200 Ae we cveney Rate, al Aas Bs 5 $0000 0 tees Fs (sire 3 2.00, Few ag ct 550000 we Ht ean ager tr aT | ce 1 3,00,000 #2 9% 100,000 We, 79% fear 3m 2.00000 wm, ¥% 000 598 At $< ae em Se, capital Gearing Ratio, & Eauty Secs Ba 356000, Rexres Rs 10,000, 7% Preference Shares Rs. 20000, Desemares 40000 pus () 1: 10r 15: 1 (5) 4:7 08S: 7, (06: tr 7: 1 ow, 067. 13, (9 33 me eee 3.00000 eee a fee 240,000 FR At 190,000 FEI at Assis Rs. 240,000, Current Liabilities Rat (3) fe $1 rt 900,00 ee fags 13.05,000 Fe Hp a se a aR 1 Total Assets ate RS, 900,000 and Sales is Rs. 1,05,000, find out the total assets (4) setter et are orga 6 171 # el 83 ee ITE 3.0000 ome a ane ‘Working Capital Ternover Ratio i 6 times ccc, Hear & Prater feral & ae was sa open ved ee 18 ah Tes ae ego 9 Cas ‘are wraferal (Current Asses) — “arg afer (Current Liabilities) ane sat waftel (Fixed Asets) — ‘tniarcts efter (Long term Liat) con rat (Equity) (Boditaband Bareilly 2005 Imp) ‘Ams (i) Debi-Equity Ratio = 047 : 1 or O67: 1 (@) Fant Asses Rano = 045-1, () so wa sued arg 1.7 yt fs 709000 FC er wef Fae Assets Turnover Rai i 17 times and Sales is Rs. 1700000, tnd the amount Solvency Ratio = 0.40: 1 or 25: L TETEM IFW (Prositability Ratios) (©) rma %.00,000 wee, fee el 550, “Total Assets RS. 80000, Fed Asets Rs 5, Am.) 6 time, (8) 145 ues, (1H) Rs $00, () RS. 1000000, 6) & ex ‘Seber came IAM (Long-term Savery Rais) 2129000 We a fies 40000 we ste ae ere 7000 FES 16 (1) eer erm aqua Sh er sifae wR Ret 200000 FR Prot s Rs. 70,00 Compute de Gres Pr Rat fat 3 Rs, 29000 an Grow Pt 9 RT Chea w Three A aan an a n and See eseernomm Cost Goods So is Re. 3464000 fed $00.00 Fe (9) arg re a 1 TE Calculate Net Pratt Ratio if Net Posts Rs. 100.000 aad Net Sales Rs 5. ar 2010) 3.2000 ee et Fe () Abe arg he ig HA 30000 Ft "ra 20.00 ee, Purchases Rs. 20,00 000, Gross Sales Rs. 30,00,000, .000, Adminstative Expenses Rs, 1,00,000, Seling fend on Shares Rs. 60,000, Loss by Theft Rs, 40,000, a), ee & am ei wee Fe 25,20,000 Fre, Fes are 120,000 FG, AK AT §8.55,000 arora te sre 21,25 000 Fwy, Fea ee ee 228,000 ft sm 98 50,000 Si 5.00000 ewe wm at eR sec & dw em 157500 BRE 18% GH 1.25000 ee ww ee SOKe le Be qty Share Capa! (S00 shares of Rs. 10 each) Rs. $0000, Earnings tetore iret and ar Rs 187800, 14 Debenors Ra 128000 Rac 22 fa si ae 27 be i wt ge 351 8A A Ae da gE ‘The caring per share of w company & Rs 27 und the market pie ofthe share Rs. 351 per share. Find out the P/F Ratio, en wie (i), aa 8 ee a tea ara 12 0 ou a see ny far sept % oft wr somes Si ote oe (LONG ANSWER NUMERICAL QUESTIONS BASED ON CALCULATION OF VARIOUS RATIOS) a oa fei a Fg Pa (Other Current Liabilities 00000 4 Feed. Gates fr the year) e200 fash a ma Cost of Sales) nat fey sequal a ween Set ‘You are required 10 calculate the foes 5% ee >) Cee im Lies Comerica Pec amy °, Sareeh eae — 1 ee ee an et Agra, “Meerut, 2010) days, (€) O61: 1 oF 163 asest CO) 111 1g) 3 tenes OE Rs ef A edhe Cello iS TEER : Tire h ds toe cen ‘ef Fad (Annual Saks) 16% ate ute et 1 of Gross Pat SS)aft wer 35,000 240,000 250% 9000 0.000 a ie — ne the following ratios (5) 219 days (Approx) & Cost of Sales Ratio = Sales/Closing Stock Preteen qari & are aif ariete Gi sya iy afer SEU ee Gi) see aa | Prepaid Expenses Rs. 10000, Other Current Assets Rs. es Rs. 200000, 125 Debentures Rs. 130000, 000, Eguty Share Capital RS. 500,000, Non-oureny (&) eters apa em ge tai See free za am ag From tne folowing, ascerain Debt-Equ ity Ratio, Proprietary Ratio and Captal Gearing Ratio : z ‘mar ate {a (Equity Share Capital) 20,00,000 ‘wrars ea (General Reserve) 100,000 2590000 1OrO71 1 (8) Proprietary Ratio = 058: 1, (a Capa, Noo-Carrent Assets: £80,000 (a) Tenge Awe | 12000 40,000 (0) Inangiie Asers | Sir cease i 6400) tection | oom ie Pe 7 8,000} Debtors | 2000 32,000) Bank Balance 24,000 for Tex 16,000 — ee eae he 9 (05: Lor 2: 1, (6) OS: 1 (€) L8TS & ee From the following balance sheet of a company you are rogue 19 calculate (tee wae seqeIA (Solvency Ratio) [BALANCE SHEET (Liabilities) Ra ate i Equity Share Capita) 1 (Depentures) re (Current Liat) -25,000| wrt Fe (BR)fer #44 (Reserve for Discount on Cece 100 rover Ratio 7 times; Deb-Payment Pena 52 aps appr, a crea ede A mora Af HA AON SIUM) x AT eR C=) STO agaeahee | fa 35,000 88, PE “ara 4,000 3 Ye Fem a 2.000 FH =H 3.0 Tefear 1,000 FR, S| eat 2.000 FR (000, Sales Returns Rs. 4,000, Cost of Net Sales Rs. 20.00, Net Prot RS RR, 6,000, Stock Rs. 1,000, Current Latics Rs 2,000 ages 8 oer ed argue we 360 fs wad} eater ach a ee Fale PR icra 0%, (6) 3: 1,(@) 25:1 8 informations, cakulte Debtors Tumover Ratio and. Avera ee Colestion Peto by adoping 360 dye na ear Ss asta Prfeen ea a & : ios from the deta grea De 100000 urrent Ratio) 534000 su p00 | (©) Hare argu (Operating Ratio) 21,900 (@)_ Wei eam Sry (Gross Prost Ratio) z 4000 fen 3 fe oa (Provision fr Doutfl Debs) 2800 — Zea dh se (Caen Coeted fom Dettors) z 400 see erg Cleon ed 9 dyn, ee es sh 3 fata 00,000 Fe re Fa opt wend 360 fe mr AO Mi ‘ae Bao A company made ced sales Of Rs. 40000 during the financial year fhe colton |-—- AR (Operating Expenses) period 536 days und year 6 asumed to be of 360 days, excuate se SOS Rear re (oat of ote Sa roca () Ree snd se (Deter Turover Ratio) Osta be vente Det) 2 ¥ ce mr Ec Ooo ea oA goon ween YAP, 1, (©) 6667%, (2) 50% Fesifea it “aera Se kd re ea HSE STE TE Debtors amount at the closing when debtors at begin ow Ce ee ‘when debiors at beginning is less than the closing March, 2015 ‘Ans. (j) 10 times, () Rs. 40,000, (i) Rs. 44,000LOS Satement of REC. Lag for ee ee Pa Ans, ,}. 359%, 2. 163%, 3. 83.6%, 4 YC Rectan Fen 3 9 From the following particulars caleulate (©) RATE (Net Profit Ratio), (©) WR Hae erm STA (Net Operating Profit Ratio), (@)_ ae seq (Operating Ratio) | Sales Lass: Cost of Sale Less : Operating Expenses Add : Non Operating Income ‘Lass : Non Operating Expenses ‘rer 8 si ae Pw 150000 Tt ane 0 Fe EDF a ec oe gen SOARS (8) Operating Ratio "fe 80000 ve, FM 20,000 FE SFL Revenue from Operations, i, Net Sas Rs. 150000 O28! of COO Non operating* Re «Tes Hed YE! a) PTO BEIT (i) HET TH BET TE FG) PET Pa (On the basis ofthe above information, calculate the following ratios : ) Current Ratio, (@) Quick Ratio, i) Stock Turnover Ratio, (1) Current Assets Tumover Rati, (¥) Working Capsial Turnover Rati, (1) Debt-Equity Ratio, (vi) Gross Profit Ratio, ‘Operating Ratio (&) Seling and Distribution Expenses Rai ‘Worth Turnover (Gi) 65. times, (rv) 0.565 times ‘or OBIS : 1, (vi) 56.67%, (vi) 1059: 1 frofegn erent a Sep) TE SINE cH a BT yw HE HTT | ny seb el rd aT, oy Te A EE SINT (i HH STFA, (vi) FTES | Saeco) PHN RT ATTA (w) TS I HE STS | ares Be ar are POT 50,000 Et 15,000 Fe, eH! Fanon ee, a rae 35,000 7, ca MT 5,000 FE et eM 10,000 pe a 10,000 6, a ‘Fn a 350,000 8, He ae 60,000, 430.000 FE! From the folowing informations, calculate: () Current Ratio, (8) Quick Ratio, ‘Bod Turnover Ratio, (5) Working Capital Turnover Ratio, () Current Assets Taro Rane, () Debt-Equny Ratio, (vi!) Proprietary Ratio and (vi) Solvency Ratio, (8) Ne Worth Tumover Ratio. we reno tom Operations i, Net Sales Rs. $,00000, Gross Prot Rs. 15,0. Net Fe premt Assets Re. 30000, Cling Ivenioy Rs 3500, Prepaid Insurance Rs aa) Giaat Corest Lies Rs. 10000, Sbre Capa Rs, 350,00, Reser 3 ae ooo, Preiminay Expenses Rs, 10000, Non-Current Assets Re 4300(2) Tange Assets and Bulging & Machinery (©) Intangible Assets: 2,50,000/ Goodwill Ni [Current Assets ; 80,000] Stock 420000} Debtors From the following information calculate ‘on total Assets, and (e) Return on shar ewe Rae ere a me eee 8 Cy oc rorya strut ag” HA emo, (>) Renn 7; | “Gia qe faa (Net Sales forthe year) ge woah (Total Assets) fet oc jz BH (Net Profit on Sales) | ga ara sd fal & STU | Grurnover of Total Assets on the bass of sls) 3A (Gross Margin | stom = oe Ins, A.G9-24%, B Co. 837%. gent ww ort & wast folowing information are given about a limited company ‘wre afer at 10 ee ft af Equity Share Capt of Rs 10a) 9% yalftaare simt Gat (99% Preference Share Capi) ‘& & Wa aH (Profit after tax) ‘a str sara BET (Market Value of Equity Sos) BE Depreciation) ‘Yield Rav. (® Rs. 705, 1 28.37 app (6 209 tes (0) 2% 07 HS 8 sort aha Frere ate eT HO Financial ‘informations of Parle co. Lig. are avalabe # Po © ‘3 S347 (Current Ratio) {8 SFI (Liquid Ratio) ‘weve ot (Working Capital) ‘ats (Reserve and Surplus) ‘ets wo (Long ter Lowa) “SraTeafiee emaft (Nominal Assets) 2275000 | Nex Keowee za * No Kaew,