Calculate following ratios on the basis of the given information-i- Current Ratio-ii- Acid Test Ratio-iii- Operating Ratio- and nbsp-iv- Gross Profit Ratio- nbsp- nbsp- nbsp-Current Assets-70-000- nbsp-Revenue from Operations -Sales-1-20-000-Current Liabilities-35-000- nbsp-Operating Expenses-40-000-Inventory-30-000- nbsp-Cost of Goods Sold or Cost of Revenue from Operations-60-000- nbsp-

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Standard XII

Accountancy

Analysing Comparative Statement of Profit and Loss

Calculate fol...

Question

Calculate following ratios on the basis of the given information:
(i) Current Ratio;
(ii) Acid Test Ratio;
(iii) Operating Ratio; and
(iv) Gross Profit Ratio.

₹ ₹

Current Assets 70,000 Revenue from Operations (Sales) 1,20,000

Current Liabilities 35,000 Operating Expenses 40,000

Inventory 30,000 Cost of Goods Sold or Cost of Revenue from Operations 60,000

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Solution

(i)

Current Assets = 70,000

Current Liabilities = 35,000

(ii)

Liquid Assets = Current Assets − Inventory

= 70,000 − 30,000 = 40,000

(iii)

Net Sales = 1,20,000

Operating Cost = Cost of Goods Sold + Operating Expenses

= 60,000 + 40,000 = 1,00,000

(iv)

Gross Profit = Net Sales − Cost of Goods Sold

= 1,20,000 − 60,000 = 60,000

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Similar questions

Q. Calculate following ratios on the basis of the following information:
(i) Gross Profit Ratio;
(ii) Current Ratio;
(iii) Acid Test Ratio; and
(iv) Inventory Turnover Ratio.

	₹		₹
Gross Profit	50,000	Revenue from Operations	1,00,000
Inventory	15,000	Trade Receivables	27,500
Cash and Cash Equivalents	17,500	Current Liabilities	40,000

Calculate following ratios from the following information:

(i) Current ratio (ii) Acid test ratio (iii) Operating Ratio (iv) Gross Profit Ratio

	Rs
Current Assets	35,000
Current Liabilities	17,500
Inventory	15,000
Operating Expenses	20,000
Revenue from Operations	60,000
Cost of Goods Sold	30,000

Q. Calculate the following ratio on the basis of following information:
(i) Gross Profit Ratio (ii) Current Ratio (iii) Acid Test Ratio (iv) Inventory Turnover Ratio (v) Fixed Assets Turnover Ratio

	Rs.
Gross Profit	50,000
Revenue from Operations	1,00,000
Inventory	15,000
Trade Receivables	27,500
Cash and Cash Equivalents	17,500
Current Liabilities	40,000
Land & Building	50,000
Plant & Machinery	30,000
Furniture	20,000

Calculate following ratios from the following information:

(i) Current Ratio

(ii) Acid test Ratio

(iii) Operating Ratio

(iv) Gross Profit Ratio

$\begin{matrix} Items & Rs. Current Assets & 35,000 Current Liabilities & 17,500 Stock & 15,000 Operating Expenses & 20,000 Sales & 60,000 Cost of Goods Sold & 30,000 \end{matrix}$

The following is the summerised transactions and Statement of Profit and Loss Account for the year ending March 31, 2007 and the Balance Sheet as on the basis of following information, calculate:

(i) Gross Profit Ratio (ii) Current Ratio (iii) Acid Test Ratio (iv) Inventory Turnover Ratio (v) Fixed Assets Turnover Ratio

	Rs.
Gross Profit	50,000
Revenue from Operations	1,00,000
Inventory	15,000
Trade Receivables	27,500
Cash and Cash Equivalents	17,500
Current Liabilities	40,000
Land & Building	50,000
Plant & Machinery	30,000
Furniture	20,000

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	₹		₹
Current Assets	70,000	Revenue from Operations (Sales)	1,20,000
Current Liabilities	35,000	Operating Expenses	40,000
Inventory	30,000	Cost of Goods Sold or Cost of Revenue from Operations	60,000