Question

From the following information calculate

(i) ***** Profit Ratio

(ii) Inventory Turnover Ratio

(iii) Current Ratio

(iv) Liquid Ratio

(v) Net Profit Ratio

(vi) Working Capital Ratio

| Items | Rs. |
| sales | 25,20,000 |
| Net profit | 3,60,000 |
| cost of sales | 19,20,000 |
| long terms debts | 9,00,000 |
| creditors | 2,00,000 |
| Average inventory | 8,00,000 |
| current assets | 7,60,000 |
| fixed assets | 14,40,000 |
| currect liabilities | 6,00,000 |
| Net profit before insterest and tax | 8,00,000 |

Answer 1

Note :In this question stock is given separately from current assets, hence* it is added to make total current assets.

Note :In this question current assetts should be considered as other current asset and stock is separate, in other words, other current assets means liquid assets. Working capital ratio and working capital turnover ratio means same.