Scribd Logo
Upload

Welcome to Scribd!

  • Tute4 Ratio Analysis

    Uploaded by

    vivek patel
    9 views2 pages
    1. For a firm with sales of Rs. 450,000, cost of goods sold of Rs. 240,000 and inventory of Rs. 90,000, the inventory turnover is 5 times. The firm's gross margin is Rs. 210,000. 2. For a firm with current assets of cash Rs. 105,000, inventories Rs. 150,000 and debtors Rs. 420,000, and a current ratio of 2:1, its current liabilities are Rs. 225,000. Its quick ratio is 1.5:1. 3. For a firm with total sales of Rs. 400,000, a gross profit margin of 15% and current ratio of 2.5

    Original Description:

    Tute4 Ratio Analysis

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    1. For a firm with sales of Rs. 450,000, cost of goods sold of Rs. 240,000 and inventory of Rs. 90,000, the inventory turnover is 5 times. The firm's gross margin is Rs. 210,000. 2. For a firm with current assets of cash Rs. 105,000, inventories Rs. 150,000 and debtors Rs. 420,000, and a current ratio of 2:1, its current liabilities are Rs. 225,000. Its quick ratio is 1.5:1. 3. For a firm with total sales of Rs. 400,000, a gross profit margin of 15% and current ratio of 2.5

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views2 pages

    Tute4 Ratio Analysis

    Uploaded by

    vivek patel
    1. For a firm with sales of Rs. 450,000, cost of goods sold of Rs. 240,000 and inventory of Rs. 90,000, the inventory turnover is 5 times. The firm's gross margin is Rs. 210,000. 2. For a firm with current assets of cash Rs. 105,000, inventories Rs. 150,000 and debtors Rs. 420,000, and a current ratio of 2:1, its current liabilities are Rs. 225,000. Its quick ratio is 1.5:1. 3. For a firm with total sales of Rs. 400,000, a gross profit margin of 15% and current ratio of 2.5

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Tutorial 5- Ratio Analysis 1. A firms sales are Rs 450000, cost of goods sold is Rs 240000 and inventory is Rs 90000.

    What is its inventory turnover Also, calculate the firms gross margin. 2. !he only current assets "ossessed #y a firm are$ cash Rs 105000, inventories Rs 5%0000 and de#tors Rs 420000. &f the current ratio for the firm is 2$1. 'etermine its current lia#ilities. Also calculate the firms (uic) ratio. *. !he total sales +all credit, of a firm are Rs %40000. &t has a gross "rofit margin of 15 "er cent and a current ratio of 2.5. !he firms current lia#ilities are Rs 9%000inventories Rs 4.000 and cash Rs 1%000. +a, 'etermine the average inventory to #e carried #y the firm, if an inventory turnover of 5 times is e/"ected , +#, 'etermine the average collection "eriod if the o"ening #alance of de#tors is intended to #e of Rs .0000 +Assume a *%00day year, 4. Assume that a firm has o1ners e(uity Rs 100000. !he ratios for the firm are $ 2urrent de#t to total de#t 0.40 !otal de#t to o1ners e(uity 0.%0 3i/ed assets to o1ners e(uity 0.%0 !otal assets turnover 2 times &nventory turnover . times 2om"lete the follo1ing #alance sheet, given the information a#ove. Liabilities 2urrent de#t 5ong term de#t !otal de#t 61ners e(uity !otal ca"ital Rs 44 444 444 444 444 Assets 2ash &nventory !otal current assets 3i/ed assets !otal assets Rs 44. 44.. 44.. 44.. 44..

    5. !he 7 R 8ic)ett 2or"oration has 9500,000 of de#t outstanding, and it "ays an interest rate of 10 "er cent annually. 8ic)etts annual sales are 92 million, its average ta/ rate is *0 "er cent, and its net "rofit margin on sales is 5 "er cent. &f the com"any does not maintain a !&: ratio of at least 5 times, its #an) 1ill refuse to rene1 the loan, and #an)ru"tcy 1ill result. What is 8ic)etts !&: ratio %. ;id1est 8ac)agings R6: last year 1as only * "er cent, #ut its management has develo"ed a ne1 o"erating "lan designed to im"rove things. !he ne1 "lan calls for a total de#t ratio of %0 "er cent, 1hich 1ill result in interest charges of 9*00,000 "er year. ;anagement "ro<ects an :=&! of 9 1,000,000 on sales of 910,000,000, and it e/"ects to have a total assets turnover ratio of 2.0. >nder these conditions, the ta/ rate 1ill #e *4 "er cent. &f the changes are made, 1hat return on e(uity 1ill the com"any earn

    You might also like