RATIO ANALYSIS

1. Current assets are ₹7,50,000 and working capital is ₹2,50,000. Calculate

current ratio. [Current Ratio 1.5:1]

2. Current Ratio 2.5; Working capital ₹60,000. Calculate current assets and
current liabilities. [Current assets ₹1,00,000 ; Current Liabilities ₹40,000]

3. Current liabilities of a company were ₹1,75,000 and its current ratio was
2:1. Afterwards it paid ₹30,000 to a creditor. Calculate Current Ratio after
payment. [Current Ratio 2.21:1]

4. Calculate Quick assets ₹1,50,000; Inventory (Stock) ₹40,000; Prepaid

expenses ₹10,000; Working Capital ₹1,20,000. Calculate Current Ratio.
[Current Ratio 2.5:1]

5. Working capital ₹3,60,000; Total Debts ₹7,80,000; Debts ₹6,00,000;

Inventories ₹1,80,000. Calculate liquid ratio. [Liquid ratio 2:1]

6. Current ratio 4; Liquid ratio 2.5; Inventory ₹6,00,000. Calculate Current

Liabilities, Current Assets and Liquid Assets.
[CL ₹4,00,000; CA ₹16,00,000; LA ₹10,00,000]

7. Current liabilities of a company are ₹1,50,000. Its current ratio is 3:1 and
acid test ratio is 1:1. Calculate values of current assets, liquid assets and
Inventory. [CA ₹4,50,000 ; LA ₹1,50,000 ; Inventory ₹3,00,000]

8. Total assets ₹22,00,000; Fixed assets ₹10,00,000; Capital employed

₹20,00,000. There was no long term investments. Calculate Current Ratio.
[Current ratio = 6:1]
9. X ltd. has a current ratio of 3:1 and quick ratio of 2:1. If the excess of current
assets over quick assets as represented by stock is ₹40,000, calculate
current assets and current liabilities. [AI 2012]
[Current ratio= ₹1,20,000 ; Current Liabilities ₹40,000]

Address: Equilibrium Classes, Near Pahari Mandir, Rani sati mandir lane, Ratu Road,
Ranchi (Jharkhand) - Ph. No. 9840885790, 7677871016.
10. Z ltd. has a current ratio of 3.5:1 and quick ratio of 1.5:1. If the excess of
current assets over quick assets as represented by stock is ₹60,000;
calculate current assets and current liabilities. [Foreign 2012]
[Current Assets ₹1,05,000 ; Current Liabilities ₹30,000]

11. From the following information calculate Debt to Equity Ratio:

10,000 equity shares of ₹10 each fully paid up ₹1,00,000 ; 5,000 ; 9%
preference shares of ₹10 each fully paid up ₹50,000 ; General Reserve
₹45,000 ; Surplus i.e. Balance in statement of profit and loss ₹20,000 ; 10%
debentures ₹75,000 and current liabilities ₹50,000.
[Debt to Equity Ratio 0.35:1]

12. Total Assets ₹12,50,000 ; Total Debts ₹10,00,000 and Current Liabilities
₹5,00,000. Calculate Debt to Equity Ratio. [Debt to Equity Ratio 2:1]

13. Capital Employed ₹8,00,000 ; Shareholder’s fund ₹2,00,000

Calculate Debt to Equity Ratio. [Debt to Equity Ratio 3:1]

14. Balance sheet had the following information:

10% preference share capital ₹5,00,000 ; equity share capital ₹15,00,000 ;
securities premium reserve ₹1,00,000 ; reserves and surplus ₹4,00,000 ;
Long term loan from IDBI @9% ₹30,00,000 ; Current Assets ₹12,00,000 ;
Current Liabilities ₹8,00,000 ; Investments ₹2,00,000 ; Fixed assets (cost)
₹60,00,000 ; depreciation written off ₹14,00,000.
Calculate ratios indicating the long term and short term financial position
of the company.
[Debt to Equity Ratio = 1.25:1 and Current Ratio = 1.5:1]

15. Calculate Total Assets to Debt Ratio:

Shareholder’s funds ₹1,60,000 ; Total Debts ₹3,60,000 ; Current Liabilities
₹40,000. [Total Assets to Debt Ratio = 1.625:1]

16. Calculate Total Assets to Debt Ratio:

Total Debt ₹60,00,000 ; Shareholder’s fund ₹10,00,000 ; reserve and surplus
₹2,50,000 ; current assets ₹25,00,000 ; working capital ₹5,00,000.
[Total assets to debt ratio = 7:4]

Address: Equilibrium Classes, Near Pahari Mandir, Rani sati mandir lane, Ratu Road,
Ranchi (Jharkhand) - Ph. No. 9840885790, 7677871016.
17. Total Debt ₹15,00,000; Current Liabilities ₹5,00,000 ; Capital Employed
₹15,00,000. Calculate Total Assets to Debt Ratio.
[Total Assets to Debt Ratio = 2:1]
18. Calculate Proprietary Ratio from the following:
Equity Share Capital ₹4,50,000 ; 10% Preference share capital ₹3,20,000 ;
Reserve and Surplus ₹65,000 ; Creditors ₹1,10,000 ; 9% debentures
₹3,00,000 ; Fixed assets ₹7,00,000 ; Trade Investments ₹2,45,000 ; Current
Assets ₹3,00,000. [Proprietary Ratio = 0.67:1]

19. From the following information calculate proprietary ratio:

Equity share capital ₹3,00,000 ; Preference share capital ₹1,50,000 ;
Reserve and Surplus ₹75,000 ; Debentures ₹1,80,000 ; Trade Payables
₹45,000 ; Fixed Assets ₹3,75,000 ; Short Term Investments ₹2,25,000 ;
Current Assets ₹1,50,000. [Proprietary Ratio = 0.70:1]

20. From the following information calculate Interest Coverage Ratio:

Profit after tax ₹1,70,000; Tax ₹30,000; Interest on long term funds ₹50,000.
[Interest Coverage Ratio = 5 times]

21. From the following information, calculate Interest Coverage Ratio:

10,000 equity shares of ₹10 each ₹1,00,000 ; 8% preference shares ₹70,000
; 10% debentures ₹50,000 ; long term loans from bank ₹50,000 ; Interest on
long term loans from bank ₹5,000 ; Profit after tax ₹75,000 ; Tax ₹9000.
[Interest Coverage Ratio = 9.4 times]

22. From the following information, calculate debt to equity ratio:

Long term borrowings ₹4,00,000; Long term provisions ₹2,00,000; Current
Liabilities ₹1,00,000; Non-Current Assets ₹7,20,000; Current Assets
₹1,80,000. [Delhi 2014] [Debt to equity ratio =3:1]

23. From the following information compute Total Assets to Debt Ratio:
Long term borrowings ₹3,00,000; Long term provisions ₹1,50,000; Current
Liabilities ₹75,000; Non-Current Assets ₹5,40,000; Current Assets
₹1,35,000. [Foreign 2014] [TADR = 1.5:1]

Address: Equilibrium Classes, Near Pahari Mandir, Rani sati mandir lane, Ratu Road,
Ranchi (Jharkhand) - Ph. No. 9840885790, 7677871016.
24. Capital Employed ₹25,00,000 ; Investment ₹2,10,000 ; Land ₹8,50,000 ;
Trade Receivables ₹2,75,000 ; Cash and Cash Equivalents ₹1,50,000 ; Equity
Share Capital ₹14,30,000 ; 8% Debentures ₹4,00,000 ; Capital Reserve
₹2,75,000 ; Surplus i.e. Balance in statement of P & L a/c 1,50,000
[AI 2015C] [TADR = Pata nahin]

25. Cost of revenue from operations ₹5,00,000; Purchases ₹5,50,000; Opening

Stock ₹1,00,000. Calculate Inventory Turnover Ratio.
[Inventory Turnover Ratio = 4 times]

26. Calculate Inventory Turnover Ratio from the following:

Opening Stock ₹29,000; Closing Stock ₹31,000 ; Revenue from operations
₹3,20,000; Gross Profit Ratio 25%. [Inventory Turnover Ratio = 8 times]

27. Total sales ₹5,00,000; Sales Return ₹50,000; Gross Profit ₹90,000; Closing
inventory ₹1,00,000; Excess of closing stock over opening stock ₹20,000.
Calculate Inventory Turnover Ratio. [Inventory Turnover Ratio = 4 times]

28. ₹2,00,000 is the Cost of Revenue from operations during the year. If the
Inventory Turnover Ratio is 8 times, calculate Inventories at the end of the
year. Inventories at the end is 1.5 times that in the beginning.
[Inventory at end ₹30,000]

29. From the following information, calculate value of opening stock:

Closing stock ₹68,000; Total Sales ₹4,80,000 (including cash sales
₹1,20,000); Total Purchases ₹3,60,000 (including credit purchase
₹2,39,200). Goods are sold at a profit of 25% on cost.
[Opening stock ₹92,000]

30. From the following information, determine opening and closing stock:
Inventory Turnover Ratio 5 times; Total sales ₹2,00,000; Gross Profit Ratio
25%. Closing stock is ₹4000 more than opening stock.
[Opening stock ₹28,000; Closing Stock ₹32,000]

31. Calculate Gross Profit and Revenue from operations from the following
data: Inventory at beginning ₹60,000; Inventory at end ₹1,00,000; ITR 8
times; selling price 25% above cost. [GP = ₹1,60,000 ; Net Sales ₹8,00,000]

Address: Equilibrium Classes, Near Pahari Mandir, Rani sati mandir lane, Ratu Road,
Ranchi (Jharkhand) - Ph. No. 9840885790, 7677871016.
32. Inventory Turnover Ratio 5 times; Cost of Revenue from operations (Cost
of goods sold) ₹18,90,000. Calculate Opening stock and Closing stock if
inventory at end is 2.5 times more than inventory in the beginning.
[Opening stock = ₹1,68,000; Closing stock ₹5,88,000]

33. ₹3,00,000 is cost of revenue from operations (cost of goods sold).

Inventory turnover ratio 8 times; Inventory in the beginning is 2 times more
than the inventory at end. Calculate the value of opening and closing stock.
[Delhi 2004] [OS ₹56,250; CS ₹18,750]

34. Calculate amount of Gross Profit and Sales from the following information:
Average Inventory ₹80,000; Inventory Turnover Ratio 6 times; Selling price
25% above cost. [Delhi 2005 C] [GP = ₹1,20,000 and COGS = ₹4,80,000]

35. Calculate Opening and Closing stock from the following information:
Total Sales ₹6,00,000; Gross Profit 25% on sales; Inventory Turnover Ratio
5 times; Closing Stock is ₹12,000 more than the opening stock.
[AI 2005C] [Opening stock ₹84,000; Closing stock ₹96,000]

36. Calculate Trade Receivable Turnover Ratio from the following information:
2015(₹) 2016(₹)
Sundry debtors 28,000 25,000
Bills Receivable 7,000 15,000
Provision for bad debts 2,800 2,500
Total Sales ₹1,00,000; Sales Return ₹1500; Cash Sales ₹23,500.
[TRTR = 2 Times]

37. Closing Trade Receivable ₹1,00,000; Cash Sales being 25% of credit sales;
Excess of closing trade receivable over opening trade receivable ₹40,000;
Revenue from operation i.e. Net Sales ₹6,00,000. Calculate Trade
Receivable Turnover Ratio. [TRTR = 6 Times]

38. ₹1,75,000 is the credit revenue from operation. If Trade Receivables

Turnover Ratio is 8 times, calculate trade receivables in the beginning and
at the end of the year. Trade receivable at the end is ₹7000 more than that
in the beginning. [Opening TR= ₹18,375; Closing TR= 25,375]

Address: Equilibrium Classes, Near Pahari Mandir, Rani sati mandir lane, Ratu Road,
Ranchi (Jharkhand) - Ph. No. 9840885790, 7677871016.
39. Closing Trade Receivables ₹4,00,000; Cash Sales being 25% of credit sales ;
Excess of closing trade receivable over opening trade receivable ₹2,00,000;
revenue from operations i.e. net sales ₹15,00,000. Calculate Trade
Receivable Turnover Ratio. [TRTR = 4 Times]

40. Calculate Trade Payable Turnover Ratio from the following information:
Opening creditors ₹1,25,000; Opening Bills Payable ₹10,000; Closing
creditors ₹90,000; closing bills payable ₹5,000; Purchases ₹9,50,000; Cash
Purchases ₹1,00,000; Purchase Return ₹45,000. [TPTR = 7 Times]

41. Capital Employed ₹12,00,000; Net Fixed Assets ₹8,00,000; Cost of Goods
sold ₹40,00,000; Gross Profit is 20% on cost. Calculate Working Capital
Turnover Ratio. [WCTR= 12 Times]

42. From the following information calculate Gross Profit Ratio:

Gross Profit ₹50,000; Revenue from operations ₹5,00,000; Sales Return
₹50,000. [Gross Profit Ratio = 10%]

43. Calculate Gross Profit Ratio from the following information:

Revenue from operations i.e. Net Sales ₹4,00,000; Gross Profit 25% on cost.
[Delhi 2004] [GPR = 20%]

44. Calculate Gross Profit Ratio from the following data:

Cash sales are 20% of total sales; credit sales are ₹5,00,000; purchases are
₹4,00,000; excess of closing stock over opening stock ₹25000.
[GPR = 40%]

45. Calculate Gross Profit Ratio from the following:

Average inventory ₹3,20,000; inventory turnover ratio 8 times ; average
trade receivables ₹4,00,000 ; trade receivable turnover ratio 6 times; cash
sales 25% of net sales. [GPR = 20%]

46. Operating ratio is 92%; operating expenses ₹94,000; Revenue from

operations ₹6,00,000; sales return ₹40,000. Calculate cost of revenue from
operations. [COGS = ₹4,58,000]

Address: Equilibrium Classes, Near Pahari Mandir, Rani sati mandir lane, Ratu Road,
Ranchi (Jharkhand) - Ph. No. 9840885790, 7677871016.
47. Calculate cost of revenue from operations from the following information:
Revenue from operations ₹12,00,000; Operating Ratio 75%; Operating
Expense ₹1,00,000. [COGS = ₹8,00,000]

48. Cost of revenue from operations ₹2,20,000; revenue from operations (net
sales) ₹3,20,000; selling expenses ₹12,000; office expenses ₹8,000;
depreciation ₹6,000. Calculate Operating Ratio. [OR = 76.87%]

49. Calculate Operating Profit Ratio from the following information:

Opening stock ₹1,00,000; Purchases ₹10,00,000; revenue from operations
₹14,70,000; Administrative and selling expenses ₹1,70,000; closing stock
₹1,50,000; loss by fire ₹20,000; dividend received ₹30,000.
[OPR = 23.81%]

50. Calculate Operating Profit Ratio from the following:

Revenue from operations (net sales) ₹5,00,000; cost of goods sold
₹2,00,000; wages ₹1,00,000; office and administrative expenses ₹50,000;
Interest on borrowings ₹5000. [OPR = 50%]

51. What will be the Operating Profit Ratio, if Operating Ratio is 82.59%?
[OPR = 17.41%]

52. Cash sales ₹2,20,000; credit sales ₹3,00,000; sales return ₹20,000; gross
profit ₹1,00,000; operating expenses ₹25,000; non-operating incomes
₹30,000; non-operating expenses ₹5000. Calculate Net Profit Ratio.
[NPR = 20%]

53. Net Profit before interest and tax ₹4,00,000; 15% long term debt ₹8,00,000;
shareholder’s funds ₹4,00,000. Calculate return on investment.
[ROI = 33.33%]

54. From the following, calculate the gross profit ratio and working capital
turnover ratio:
Revenue from operations ₹30,00,000; current assets ₹6,00,000; paid-up
share capital ₹5,00,000; cost of revenue from operations ₹20,00,000;
current liabilities ₹2,00,000. [Delhi 2014 C]
[GPR = 33.33% and WCTR = 7.5 times]

Address: Equilibrium Classes, Near Pahari Mandir, Rani sati mandir lane, Ratu Road,
Ranchi (Jharkhand) - Ph. No. 9840885790, 7677871016.
55. From the following information, calculate Inventory (stock) turnover ratio:
Revenue from operations i.e. net sales ₹3,00,000; Gross Profit 25% on cost;
opening stock was 1/3rd of the value of closing stock; closing stock 30% of
sales. [Delhi 2006]
[ITR = 4 Times]

56. From the following information, calculate:

(a) Current Ratio
(b) Working capital turnover ratio

Revenue from operations ₹1,50,000; Shareholder’s funds ₹60,000; Non-

Current Assets ₹50,000; Total Assets ₹1,00,000; Non-Current Liabilities
₹20,000. [AI 2014 C]
[CR = 2.5:1 ; WCTR = 5 Times]

57. A company’s Inventory turnover is 5 times; inventory at end is ₹20,000

more than that in the beginning. Sales are ₹8,00,000; Rate of Gross Profits
on cost 1/4; current liabilities ₹2,40,000 and acid test ratio 0.75. Calculate
Current Ratio. [CR = 1.33:1]

58. From the following information, calculate the following ratios:

(a) Gross Profit Ratio
(b) Working capital turnover ratio
(c) Proprietary ratio
Paid up share capital ₹8,00,000; Current Assets ₹5,00,000; Credit sales
₹3,00,000; Cash Sales ₹75% of credit sales ; 9% debentures ₹3,40,000;
current liabilities ₹2,90,000; cost of revenue from operations ₹6,80,000.
[Delhi 2009]
[GPR = -29.52% ; WCTR = 2.5 Times; PR = 0.56:1]

59. Net Profits after interest but before tax ₹1,40,000; 15% long term debts
₹4,00,000; shareholder’s funds ₹2,40,000; tax rate 50%. Calculate Return
on capital employed. [Delhi 2009]
[Return on capital employed = 31.25%]

Address: Equilibrium Classes, Near Pahari Mandir, Rani sati mandir lane, Ratu Road,
Ranchi (Jharkhand) - Ph. No. 9840885790, 7677871016.
60. From the following information calculate following ratios:
(a) Current Ratio
(b) Debt to Equity Ratio
(c) Inventory Turnover Ratio

Revenue from operations ₹5,00,000; Opening Stock ₹7,000; Closing stock

₹4,000 more than opening stock; Net Purchases ₹1,00,000 less than revenue
from operations i.e. net sales; Operating expenses ₹30,000; Liquid assets
₹75,000; prepaid expenses ₹2,000; current liabilities ₹60,000; 9% debentures
₹3,00,000; long term loan from bank ₹1,00,000; equity share capital
₹10,00,000; 8% preference share capital ₹2,00,000. [Delhi 2010 C]
[CR = 1.47:1; D-E Ratio = 1:3; ITR = 44 Times]

61. From the following information calculate following ratios:

(a) Liquid Ratio
(b) Gross Profit Ratio
(c) Debt to Equity Ratio

Revenue from operations ₹4,00,000; Opening Stock ₹10,000; Closing stock

₹3,000 less than opening stock; Net Purchases 80% of revenue from operations
i.e. net sales; Direct expenses ₹20,000; Current assets ₹1,00,000; prepaid
expenses ₹3,000; current liabilities ₹60,000; 9% debentures ₹4,00,000; long
term loan from bank ₹1,50,000; equity share capital ₹8,00,000; 8% preference
share capital ₹3,00,000. [AI 2010 C]
[LR = 1.5:1; GPR = 14.25% ; D-E Ratio = 1:2]

62. On the basis of following information calculate:

(a) Debt to Equity Ratio
(b) Working capital turnover ratio

Revenue from operations i.e. Net sales ₹60,00,000; Cost of revenue from
operations ₹45,00,000; Other Current Assets ₹11,00,000; Current Liabilities
₹4,00,000; Paid up share capital ₹6,00,000; 6% debentures ₹3,00,000; 9% loan
₹1,00,000; debenture redemption reserve ₹2,00,000 ; closing stock ₹1,00,000.
[Delhi 2011]
[DE Ratio = 0.5:1; WCTR = 5.63 Times]

Address: Equilibrium Classes, Near Pahari Mandir, Rani sati mandir lane, Ratu Road,
Ranchi (Jharkhand) - Ph. No. 9840885790, 7677871016.
 63. From the following information related to Naveen Ltd. calculate:
(a) Return on Investment
(b) Total Asset to Debt Ratio
Fixed assets ₹75,00,000; Current Assets ₹40,00,000; Current Liabilities
₹27,00,000; 12% debentures ₹80,00,000 and Net Profits before tax and
dividend ₹14,50,000. [Delhi 2015]
[ROI = 16.48% ; TADR = 1.44:1]

64. With the help of following information, calculate Return on Investment:

Net Profits after interest and tax ₹8,00,000; 10% debentures ₹9,00,000 ; Tax @
50%; capital employed ₹2,00,00,000. [Delhi 2015 C]
[ROI = 8.45%]

65. Nishit was the Managing Director of Lalita Electronics Ltd. He had been
earning good revenues and profits for the company. He believed in giving
respects to his subordinates as his moral responsibility. He was the one who
recognized the need to find ecofriendly ways to treat waste. Following is
the comparative statement of profit and loss of Lalita Electronincs for the
years ended 31st March 2013 and March 31st 2014:
Particulars Note 31st March 31st march Absolute Percentage
no. 2013 2014 change (₹) change (₹)
Revenue from operations 14,00,000 18,00,000 4,00,000 28.50
Less: Employees benefit 4,00,000 5,00,000 1,00,000 25.00
expenses
Profits before tax 10,00,000 13,00,000 3,00,000 30.00
Tax @ 30% 3,00,000 3,90,000 90,000 30.00
Profits after tax 7,00,000 9,10,000 2,10,000 30.00

(a) Calculate Net Profit Ratio for the years ending March 31st 2013 and 2014.
(b) Identify any two values which are being communicated to the society in the
above case. [AI 2015 C]

66. The motto of Pharma Ltd. , a company engaged in the manufacturing of

low cost generic medicines, is “Healthy India”. Its management and
employees are hardworking, honest and motivated. The net profits of the
company doubled during the year ended 31st March 2014. Encouraged by
its performance, the company decided to pay bonus to all employees at
double the rate than last year.

Address: Equilibrium Classes, Near Pahari Mandir, Rani sati mandir lane, Ratu Road,
Ranchi (Jharkhand) - Ph. No. 9840885790, 7677871016.
 Following is the comparative statement of profit and loss of the company for
the year ended March 31st 2013 and March 31st 2014.
Particulars Note 31st March 31st march Absolute Percentage
no. 2013 2014 change (₹) change (₹)
Revenue from operations 20,00,000 30,00,000 10,00,000 50.00
Less: Employees benefit 12,00,000 14,00,000 2,00,000 16.67
expenses
Profits before tax 8,00,000 16,00,000 8,00,000 100.00
Tax @ 30% 2,00,000 4,00,000 2,00,000 100.00
Profits after tax 6,00,000 12,00,000 6,00,000 100.00

(c) Calculate Net Profit Ratio for the years ending March 31st 2013 and 2014.
(d) Identify any two values which are being communicated to the society in the
above case. [AI 2015 ]

67.For the year ended March 31, 2017, Net Profit after tax of K X Limited was
Rs. 6,00,000. The company has Rs. 40,00,000 12% Debentures of Rs. 100
each. Calculate Interest Coverage Ratio assuming 40% tax rate. State its
significance also. Will the Interest Coverage Ratio change if during the year
2017-18, the company decides to redeem debentures of Rs. 5,00,000 and
expects to maintain the same rate of Net Profit and assume that the Tax
rate will not change. [CBSE Sample Paper 2017]

68. The proprietary ratio of M ltd. is 0.80:1. State with reasons whether the
following will increase, decrease or not change the ratio:
(a) Obtained a loan from bank ₹2,00,000 payable after five years.
(b) Purchased machinery for cash ₹75,000.
(c) Redeemed 5% redeemable preference shares ₹1,00,000.
(d) Issued equity shares to the vendors of machinery purchased for ₹4,00,000.
[AI 2017]

69. The quick ratio of a company is 0.8:1. State with reasons whether the
following transactions will increase, decrease or not change the quick ratio:
(a) Purchase of loose tools ₹2,000.
(b) Insurance premium paid in advance ₹500.
(c) Sale of goods on credit ₹3,000.
(d) Honoured a bills payable of ₹5,000 on maturity. [Delhi 2017]

Address: Equilibrium Classes, Near Pahari Mandir, Rani sati mandir lane, Ratu Road,
Ranchi (Jharkhand) - Ph. No. 9840885790, 7677871016.
70. (a) Net profit after interest and tax ₹1,00,000; current assets ₹4,00,000;
current liabilities ₹2,00,000; tax rates 20%; fixed assets ₹6,00,000; 10% long
term debts ₹4,00,000. Calculate Return on Investment.
(c) Rate of gross profit on cost of a company is 25%. Its gross profit is ₹5,00,000.
Its shareholder’s funds are ₹12,00,000; Current liabilities are ₹3,00,000 and
current assets ₹10,00,000. Calculate Working Capital Turnover Ratio.
[AI 2017 C]

71. From the following information calculate Inventory Turnover Ratio:

Revenue from operations ₹16,00,000 ; Average inventory ₹2,20,000 ; Gross
Loss Ratio 5%. [AI 2016]

72. From the following information calculate Interest Coverage Ratio:

Net Profits after tax ₹1,20,000 ; 12% long term debt ; tax rate 40%.
[Delhi 2016]

73. From the following information calculate Operating Ratio:

Revenue from operations ₹6,80,000; Rate of Gross Profits on cost 25%;
Selling expenses ₹1,44,000; administrative expenses ₹73,000. [Delhi 2016]

74. From the following information calculate Operating Profit Ratio:

Operating stock ₹10,000; Purchases ₹1,20,000 ; Revenue from operations
₹4,00,000 ; Purchase returns ₹5,000 ; Returns from revenue from
operations ₹15,000; Selling expenses ₹70,000 ; administrative expenses
₹40,000; closing stock ₹60,000. [Delhi 2016]

75. With the help of following information, calculate Return on Investment:

Net Profits after interest and tax ₹9,00,000; 10% debentures ₹12,00,000 ;
Tax @40% ; capital employed ₹82,20,000. [Delhi 2015 C]

Address: Equilibrium Classes, Near Pahari Mandir, Rani sati mandir lane, Ratu Road,
Ranchi (Jharkhand) - Ph. No. 9840885790, 7677871016.