Ratio analysis | Ashmita Old is Gold solution of account grade 12
ASHMITA OLD IS GOLD
SOLUTION OF ACCOUNT|GRADE - 12| RATIO ANALYSIS
Ratio Part Click here
2076 Set
B Q. No. 15
(a) Current ratio =
(current assets)/(current liabilities)
=
160000/80000
= 2:1
Working note
Current
assets =Debtors + Cash balance + closing stock
=
40000 + 24000 + 96000
=
160000
Current
liabilities = Creditors
=
80000
(b) Quick ratio = (Quick
assets)/(Current liabilities)
=
64000/80000
= 0.8:1
Working note
Quick assets = Current assets – closing stock
=
160000 – 96000
=
64000
(c) Debtors
turnover ratio = (Net sales) / (Closing debtors)
Or, 10 = Net sales / 40000
Net sales = Rs. 400000
(d) Gross profit ratio = (Gross profit)/(Net sales)*100
=
80000/400000*100
=20%
(e) Net profit ratio = (Net
profit)/(Net sales) *100
=
50000/400000*100
=
12.5%
2076 Set C Q. No. 15
(a) Gross profit margin = (Gross profit)/(Net
sales)*100
20 = (108000/ Net sales)*100
0.2 = 108000 / Net sales
0.2 Net sales = 108000
Sales
Amount = Rs. 540000
(b) Quick ratio = (Quick
Assets)/(Current liabilities)
=
50000/45000
= 11.11:1
Working
note
Quick assets = Debtors +
Cash balance
= 40000 + 10000
= 50000
Current liabilities = Bank
overdraft + Expenses due + Creditors
= 10000 + 5000 + 30000
= 45000
(c) Net profit margin =
(NPAT)/Neet sales *100
5 = Net profit / 540000
*100
0.05 = Net profit / 540000
Net profit = Rs. 27000
(d) Return on shareholder's equity = ((NPAT) / Shareholder's fund) *100
= (27000 / 270000)*100
= 10%
Working
note
Shareholder's fund = Share
capital + General reserve +Retaining earning
= 200000 + 50000 + 20000
= 270000
2075 Set A Q. No. 15
(a) Current ratio =
(Current assets) / Current liabilities
=
400000/125000
= 3.2:1
Working
note
Current assets = Stock +
Cash + Debtors
= 200000 + 50000 +
150000
= 400000
Current liabilities =
Creditors
= 125000
(b) Liquid ratio = Liquid
ratio / Current liabilities
= 200000 /
125000
= 1.6:1
Working
note
Liquid assets =
Current assets - Stock
= 400000 - 200000
= 200000
(C) Debtors turnover ratio = Net sales / Debtors
= 700000 / 150000
= 4.67 times
(d) Fixed assets turnover
ratio = Sales/Fixed assets
OR,
2.5 = 700000 / fixed assets
OR,
2.5 fixed assets = 700000
Fixed assets = Rs. 2800000
2075 Set B Q. No. 15
- Average stock = (Opening stock + Closing stock) / 2
OR, 125000 = (100000 +
Closing stock) / 2
OR, 250000 = 100000 +
Closing stock
Closing stock = 250000 – 100000
= 150000
Stock at the end = 150000
Inventory turnover ratio = Cost of goods sold / Average Inventory
OR, 4 = Cost of goods sold
/ 125000
OR, Cost of good sold = Rs. 500000
Gross profit = Sales – Cost of goods sold
Amount of Sales = 125000 + 500000
= Rs. 625000
(c Fixed
assets turnover ratio = Sales / Net fixed assets
=
625000 / 156250
=
4 times
(dDebt equity ratio = (Long term debt / Shareholders
equity)*100
Or, 40% = (Long term debt /
500000)*100
Or, 0.4 = Long term debt /
500000
Long term
debt = Rs. 200000
2074 Supp. Q. No. 15
(a) Gross
profit margin = (Gross profit / Net sales) * 100
OR, 20% =
(300000 / Sales) *100
OR, 0.2 =
300000 / Sales
Or, 0.2
Sales = 300000
Or, Sales Amount = Rs. 1500000
(b) Fixed assets turnover ratio = Sales / Fixed assets
=
1500000 / 750000
= 2 times
Working note
Fixed
assets = Land and building + Machinery
=
600000 + 150000
= Rs. 750000
(c) Net profit ratio = (Net
profit / Net sales) *100
=
(150000 / 1500000)*100
= 10%
(d) Quick ratio = Quick
assets / Current liabilities
=
780000 / 390000
= 2.1:1
Working note
Quick
assets = Total current assets – Inventories - Prepaid
=
1000000 – 200000 – 20000
=
780000
Current
liabilities = Current liabilities
=
390000
2074 Set A Q. No. 15
(a) Current ratio =
(Current assets / Current liabilities)
=
100000 / 50000
=
2:1
Working
note
Current assets = Debtors +
Cash + Prepaid insurance
=
60000 + 35000 + 5000
=
100000
Current liabilities =
Creditors + Interest due
=
400000 + 10000
=
Rs. 50000
(b) Quick ratio = Quick
assets / Current liabilities
=
95000 / 50000
=
1.9:1
Working
note
Quick assets = Current
assets – Prepaid insurance
=
100000 – 5000
=
95000
(c) Debt-equity ratio = (Long term debts / Shareholder’s fund)
=
(100000 / 240000) * 100
=
41.67 %
Working
note
Long term
debts = 10 % debenture
= 100000
Shareholder’s
fund = Share capital + Reserve & Surplus – Preliminary expenses
= 200000
+ 50000 – 10000
= 240000
(d) Earnings per share = (NPAT – Pref. dividend) / No. of common shares outstanding
=
(20000-0) / 2000
= Rs. 10
Working note
Net
profit = 50000
(-) 10%
debenture interest 10000
Net
profit after interest 40000
(-) Tax
20000
Net
profit after tax 20000
No.
of common share = 200000/100
= 2000
2074 Set B Q. No. 15
(a) Current
ratio = Current assets / Current liabilities
Or, 2 = 300000 / Current liabilities
Or, 2 Current liabilities = 300000
Current liabilities = Rs. 600000
Working note
Current assets = Debtors + Cash in hand + Closing stock
=
250000 + 50000 + 100000
=
400000
(b) Inventory turnover ratio = Sales / Closing stock
=
500000 / 100000
=
5 times
(c) Debt-equity ratio = (Long term debts / Shareholder’s fund) *100
= (200000 / 550000)*100
= 36.36%
Working note
Long term
debts = Debenture
=
200000
Shareholder’s
fund = Profit & loss a/c + Share capital
=
50000 + 500000
=
550000
(d) Net profit ratio = (Net
profit / Net sales) *100
=
(50000 / 500000) *100
=
10%
2073 Supp. Q. No. 15
(a) Earnings per share = (NPAT – Pref. dividend) / No. of common
= (240000 – 10000) / 2000
= Rs. 115
Working note
Net profit before tax 400000
(-) Tax
160000
Net profit after tax 240000
(b) Debt-equity ratio = (Long term debts / Shareholder’s fund) *100
=
(100000 /300000) *100
=
33.33 %
Working note
Shareholder’s
fund = Equity share + Preference share
=
200000 + 100000
= 300000
(c) Return on common share = (NPAT – Pref. Dividend) / Equity share *100
= (240000
– 10000 / 200000) *100
= 115 %
2073 Set
C. Q. No. 15
(a) Current ratio =
(current assets)/(current liabilities)
= 600000 / 200000
=
3:1
Working note
Current
assets = Debtors + Cash + Inventory
=
250000 + 150000 + 200000
=
600000
Current
liabilities = Creditors + Outstanding expenses
=
100000 + 10000
= 200000
(b) Quick ratio = (Quick
assets)/(Current liabilities)
= 400000 / 200000
= 2:1
Working note
Quick assets = Current assets – Inventory
=
600000 – 200000
= 300000
(c) Inventory turnover ratio = Sales / Inventory
= 2500000 / 200000
= 12.5 times
(d) Debt-equity ratio = (Long term debts / Shareholder’s fund) *100
=
(500000 / 1250000) *100
=
40 %
Working
note
Shareholder’s equity =
Share capital + Undistributed profit – Discount on share issued
=
1000000 + 300000 – 50000
=
1250000
2073 Set D. Q. No. 15
(a) Current ratio =
(current assets)/(current liabilities)
= 340000 / 100000
= 3.4:1
Working note
Current assets = Inventories + Debtors + Cash
=
150000 + 175000 + 15000
= 340000
Current liabilities = Creditors
= 100000
(b) Liquid ratio = (liquid
assets)/(Current liabilities)
= 190000 / 100000
= 1.9:1
Working note
Liquid assets = Current assets – Inventories
=
340000 – 150000
= 190000
(c) Debtors turnover ratio = sales/Debtors
= 875000 / 175000
= 5 times
(d) Fixed
assets turnover ratio = Sales / Fixed assets
Or, 3.5 =
875000 / Fixed assets
Or, 3.5
fixed assets = 875000
Fixed assets = Rs.
250000
2072
Supp. Q. No. 15
(a) Current ratio =
(current assets)/(current liabilities)
=
200000 / 100000
=
2:1
Working note
Current assets = Cash balance + Closing stock + Debtors
= 30000 + 120000 + 50000
=200000
Current liabilities = Bills payable + Creditors
=
20000 + 80000
=
100000
(b) Quick ratio = (Quick
assets)/(Current liabilities)
=
80000/100000
= 0.8:1
Working note
Quick assets = Current assets – closing stock
=
200000 – 120000
= 80000
(c) Debtors
turnover ratio = Sales / Debtors
Or, 10 = Sales amount / 50000
Sales amount = Rs. 500000
(d) Gross
profit margin = (Gross profit / Sales)*100
Or, 20% = (Gross profit / 500000)*100
Or, 0.2 = Gross profit / 500000
Gross profit = Rs. 100000
2072 Set C. Q. No. 15
(a) Current
ratio = Current assets / Current liabilities
Or,
2 = 480000 / Current
liabilities
Or, 2 Current liabilities = 480000
Current liabilities = Rs. 240000
Working note
Current assets = Closing stock + Cash in hand + Debtors
=
210000 + 120000 + 150000
= 480000
(b) Quick ratio = Quick
assets/Current liabilities
=
270000 / 240000
=
1.125:1
Working note
Quick assets = Current assets – Closing stock
=
480000 – 210000
= 270000
(c) Debt-equity ratio = (Long term debts / Shareholder’s fund) *100
= (200000 / 500000)*100
=
40%
Working note
Shareholder’s
equity = Share capital
=
500000
Long term
debts = 10% debenture
= 200000
(d) Debt to total capital ratio = (Long term debts / Capital employed)*100
= (200000
/ 700000)*100
= 28.57%
Working note
Capital
employed = LTD + SE
=
200000 + 500000
=
700000
2072 Set
D. Q. No. 15
(a) Current
ratio = (current assets)/(current liabilities)
Or, 2 = 200000 / Current liabilities
Current liabilities = 100000
Working note
Current assets = Current assets + Inventories
=
200000 + 70000
= 270000
(b) Inventory
turnover ratio = Sales / Inventories
Or, 5 = Sales / 70000
Sales amount = Rs. 350000
(c) Debt-equity ratio = (Long term debts / Shareholder’s fund) *100
= (200000 / 500000)*100
= 40%
Working note
Long term debt = 10% debenture
= 200000
Shareholder’s equity = Share capital
= 500000
(e) Debt to total capital ratio = (Long term debts / Capital employed)*100
= (200000/700000)*100
=28.57%
Working
note
Capital
employed = LTD + SE
=
200000 + 500000
=
700000
2072 Set
E. Q. No. 15
(a) Current ratio =
(current assets)/(current liabilities)
= 200000 / 100000
=2.1
: 1
Working note
Current assets = Debtors + Cash + Prepaid insurance + stock
=
80000 + 70000 + 10000 + 40000
=
200000
Current liabilities = Creditors + Expenses due
=
60000 + 40000
= 100000
(b) Quick ratio = (Quick
assets)/(Current liabilities)
= 150000 / 100000
=
1.5 : 1
Working note
Quick assets = Current assets – prepaid insurance-stock
=
200000 - 10000 – 40000
= 150000
(c) Debt-equity ratio = (Long term debts / Shareholder’s fund) *100
= (100000 / 230000)*100
=
43.48 %
Working note
Long term
debts = 10% debenture
= 100000
Shareholder’s
fund = Share capital + Reserve fund – Preliminary expenses
= 200000
+ 50000 – 20000
=230000
(d) Return
on shareholder’s equity = (NPAT – Pref. dividend)/Equity shareholder’s fund
= (23000
– 0) / 2000
= 11.5 %
Working note
Net
profit before interest and tax 56000
(-) Interest 10000
Net
profit after interest 46000
(-) Tax 23000
Net
profit after tax = 23000
