# Question 107 Chapter 4 of +2-B – USHA Publication 12 Class Question 107 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

107. (GP Ratio/WC T/O Ratio/Debt Equity Ratio) On the basis of following information, calculate (i) Gross Profit Ratio, (ii) Working Capital Turnover Ratio, (iii) Debt Equity Ratio
Net Sales (Revenue from Operations) ₹ 30,00,000; Cost of Goods Sold (i.e. Cost of Revenue from Operations) ₹ 20,00,000; Current Assets ₹ 6,00,000; Current Liabilities ₹ 2,00,000 Paid-up Share Capital ₹ 5,00,000; Debentures ₹ 2,50,000; Loan ₹ 1,25,000.

## The solution of Question 107 Chapter 4 of +2-B: –

 (i) Gross Profit Ratio = Gross Profit X 100 Net Sales = ₹ 10,00,000 X 100 ₹ 30,00,000 = 33.33%

 (ii) Working Capital Turnover Ratio = Sales Working Capital = ₹ 30,00,000 ₹ 4,00,000 = 7.5 times
 (iii) Debt Equity Ratio = Debt Equity = ₹ 3,75,000 ₹ 5,00,000 = 0.75: 1

Working Notes :

 Gross Profit = Sales – Cost of goods sold = ₹ 30,00,000 – ₹ 20,00,000 = ₹ 10,00,000 Working Capital = Current Assets – Current Liabilities = ₹ 6,00,000 – ₹ 2,00,000 = ₹ 4,00,000 Debt = Debentures + Loan = ₹ 2,50,000 + ₹ 1,25,000 = ₹ 3,75,000

Also, Check out the solved question of previous Chapters: –