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Focus Topic:Question No 72 Chapter 7 – UNIMAX Class 12 Part 2 – 2021
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Question No 72 Chapter 7 – UNIMAX Class 12 Part 2 – 2021
With the help of the given information calculate the following ratios:
(I) operating ratio, (ii) quick ratio, (iii) working capital turnover ratio and (iv) debt to total funds ratio.
Information. Equity share capital 1,00,000 ; 12% preference share capital 80,000 ; 12% debentures 60,000 ; general reserve 40,000 ; sale 3,00,000 ; opening stock 10,000 ; purchases 1,20,000 ; wages 30,000 ; closing stock 30,000 ; selling and distribution expenses 10,000 ; other current assets 2,00,000 and current liabilities 1,20,000.
The solution of Question No 72 Chapter 7 – UNIMAX Class 12 Part 2 – 2021: -
| (I) Quick ratio |
= |
quick assets |
| current liabilities |
| = |
2,00,000 |
| 1,20,000 |
| = |
1.67 : 1 Ans. |
| (ii) C.O.G.S. |
= |
opening stock + net purchases + direct expenses – closing stocks |
| |
= |
10,000 + 1,20,000 + 30,000 – 30,000 |
| |
= |
1,30,000 |
| Operating cost |
= |
C.O.G.S. + operating expenses |
| |
= |
1,30,000 + 10,000 |
| |
= |
₹ 1,40,000 |
| Operating ratio |
= |
operating cost |
x |
100 |
| Net sales |
| = |
1,40,000 |
x |
100 |
| 3,00,000 |
| = |
46.67 % Ans. |
|
|
| (iii) working capital |
= |
current assets – current liabilities |
| |
= |
2,00,000 + 30,000 – 1,20,000 |
| |
= |
1,10,000 |
| Working capital |
= |
Net sales |
| working capita |
| Turnover Ratio |
= |
3,00,000 |
| 1,10,000 |
| |
= |
2.73 times Ans. |
| (iv) long term debts to total funds ratio |
= |
long term debts |
| long term funds |
| = |
60,000 |
| 1,00,000 + 80,000 +60,000+ 40,000 |
| = |
60,000 |
| 2,80,000 |
| = |
0.214 : 1 Ans. |
