Question 145 Chapter 4 of +2-B
Table of Contents
Miscellaneous
145. From the following information related to Naveen Ltd.,
calculate (a) Return on Investment and (b) Total Assets to Debt Ratio:
Information: Fixed Assets Rs 75,00,000; Current Assets Rs 40,00,000; Current Liabilities Rs 27,00,000; 12% Debentures Rs 80,00,000 and Net Profit before Interest, Tax and Dividend Rs 14,50,000.
The solution of Question 145 Chapter 4 of +2-B: –
I
Net Profit before Interest & Tax | = | Rs 14,50,000 |
Capital Employed | = | Fixed Assets + Current Assets – Current Liabilities |
= | Rs 75,00,000 + Rs 40,00,000 – Rs 27,00,000 | |
= | Rs 88,00,000 |
Return on Investment Ratio | = | Net Profit before Interest & Tax | X | 100 |
Capital Employed |
Return on Investment Ratio | = | Rs. 14,50,000 | X | 100 |
Rs 88,00,000 | ||||
= | 16.48% |
II
Total Assets | = | Fixed Assets + Current Assets |
= | Rs 75,00,000 + Rs 40,00,000 | |
= | Rs 1,15,00,000 | |
Long term Debts | = | Rs 80,00,000 |
Total Assets to Debts Ratio | = | Total Assets |
Long term Debts |
= | Rs. 1,15,00,000 | |
Rs 80,00,000 | ||
= | 1.44 : 1 |
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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