Question

The following are the profit and Loss account and balance sheet of Sharathi Trading Co. Ltd. for the year ended on 31.03.2015:

From the above information calculate,

(a) ***** profit ratio.

(b) Current ratio

(c) Stock Turnover ratio

(d) Liquidity ratio

(e) Operating ratio.

Answer 1

Note : Operating cost = Cost of goods sold + operating expenses 2,50,000 + (75000 + 60000)

= 3,85,000