Question 94 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

94. (Current Ratio/Acid Test Ratio/Operating Ratio/GP Ratio) Calculate the following ratios, from the details given as under :
(i) Current ratio (ii) Acid test ratio
(iii) Operating ratio (iv) Gross profit ratio

 ₹ Liquid assets 40,000 Current liabilities 20,000 Inventory 10,000 Sales (Revenue from Operation) 50,000 Operating expenses 15,000 Cost of goods sold (i.e. Cost of Revenue from Operation) 20,000

## The solution of Question 94 Chapter 4 of +2-B: –

 (i) Current Ratio = Current Assets Current Liabilities = = ₹ 50,000 ₹ 20,000 = 2.5: 1
 (ii) Acid Test Ratio = Liquid Assets Current Liabilities = = ₹ 40,000 ₹ 20,000 = 2: 1

 (iii) Operating Ratio = Operating Cost X 100 Sales = = ₹ 35,000 X 100 ₹ 70,000 = 70%
 (iv) Gross Profit Ratio = Gross Profit X 100 Sales = = ₹ 30,000 X 100 ₹ 50,000 = 60%

 Current Assets = Liquid Assets + Stock = ₹ 40,000 + ₹ 10,000 = ₹ 50,000 Current Liabilities = ₹ 20,000 Operating Cost = Cost of goods sold + Operating Expenses = ₹ 20,000 + ₹ 15,000 = ₹ 35,000 Gross Profit = Sales – Cost of goods sold = ₹ 50,000 – ₹ 20,000 = ₹ 30,000

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