| 1. |
From the following particulars, you are required to calculate : (i) Current Ratio (ii) Net Profit Ratio (iii) Gross Profit Ratio Net Sales : Rs.1,40,000; Gross Profit :Rs.10,000; Net Profit :Rs.6,000; B/R : Rs.2000 ;Debtors:Rs.8,000; Stock: Rs.10,000; Cash: Rs.6000; Creditors:Rs.12,000; B/P:Rs.8,800 |
Answer» Calculation of (i) Current Ratio (II) NET Profit Ratio (iii) Gross Profit RatioExplanation:(i) Current Ratio = Current ASSETS÷ Current liabilities Current assets = B/R + Debtors + STOCK + Cash Rs.2000 + Rs.8,000 + Rs.10,000 + Rs.6000 = Rs.26000 Current liabilities = Creditors + B/P Rs.12,000 + Rs.8,800 = Rs.20800 Current Ratio = Rs.26000 ÷ Rs.20800 = 1.25: 1 (ii) Net Profit Ratio = Net Profit ÷ Net Sales × 100 Rs.6,000 ÷ Rs.1,40,000 × 100 = 4.28% (iii) Gross Profit Ratio = Gross Profit ÷ Net Sales × 100 Rs.10,000 ÷ Rs.1,40,000 × 100 = 7.14% To know more:(i) Current Ratio (ii) Net Profit Ratio (iii) Gross Profit Ratio |
|