Question 60 Chapter 4 of +2-B - USHA Publication 12 Class

Question 60 Chapter 4 of +2-B

Working Capital Turnover Ratio

Fixed Asset T/O Ratio (Not for PSEB-Students)
60.(Calculate Fixed Assets Turn Over Ratio)Calculate Fixed Assets turnover ratio from the following :

	₹
Working capital	2,00,000
Cost of goods sold	30,00,000
Gross Profit	10,00,000
Capital employed	12,00,000

The solution of Question 60 Chapter 4 of +2-B: –


Fixed Assets Turnover Ratio	=	Net Sales
	=	Net Fixed Assets
Cost of sales	=	₹ 40,00,000*
Cost of sales	=	₹ 10,00,000**
Gross profit on Sale	=	4 times

*Net sales	=	Cost of goods sold + Gross Profit
	=	₹ 30,00,000 + ₹ 10,00,000
	=	₹ 40,00,000

**Net Fixed Assets	=	Capital employed – Working capital
	=	₹ 12,00,000 – ₹ 2,00,000
	=	₹ 10,00,000

End of Solution

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Chapter No. 8 – Company Accounts (Share Capital)

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Chapter No. 14 – Accounting Ratios

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