EDUNIQUE TUTORIALS

WORKSHEET: RATIO ANALYSIS

1. Shine Limited has a current ratio 4.5:1 and quick ratio 3:1; if the inventory is 36,000, calculate
current liabilities and current assets.
2. Current liabilities of a company are Rs 75,000. If current ratio is 4:1 and liquid ratio is 1:1, calculate
value of current assets, liquid assets and inventory.
3. Handa Ltd.has inventory of Rs 20,000. Total liquid assets are Rs 1,00,000 and quick ratio is 2:1.
Calculate current ratio.
4. Calculate debt equity ratio from the following information:
Rs
Total Assets 15,00,000
Current Liabilities 6,00,000
Total Debts 12,00,000

5. Calculate Current Ratio if:

Inventory is Rs 6,00,000; Liquid Assets Rs 24,00,000; Quick Ratio 2:1.

6. Compute Stock Turnover Ratio from the following information:

Rs
Net Revenue from Operations 2,00,000
Gross Profit 50,000
Inventory at the end 60,000
Excess of inventory at the end over inventory in 20,000
the beginning

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Prof. Harsh Shah (Accounts, Economics, Commerce) 9022039186
Prof. Darshit Shah (Math) 8080044710
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7. Calculate following ratios from the following information:
(i) Current ratio (ii) Acid test ratio

(iii) Operating Ratio (iv) Gross Profit Ratio

Rs.
Current Asset 35000
Current Liabilities 17500
Inventory 15000
Operating expense 20000
Revenue of operations 60000
Cost of goods sold 30000

8. Current liabilities of a company are Rs. 5,60,000. Current Ratio is 5: 2 and quick ratio is 2.
9. Current assets of a company are Rs. 5,00,000. Current ratio is 2.5 : 1 and quick ratio is 1 : 1.
Calculate the value of current liabilities, liquid assets and stock.

10. Calculate the amount of gross profit

Average stock = Rs.80,000
Stock turnover ratio = 6 times
Selling price = 25% above cost
Answer Average stock = ? 80,000
Stock Turnover Ratio = 6 times
Selling Price = 25% above cost .

11. Current Ratio is 3:5 Working Capital is Rs. 9,00,000. Calculate the amount of Current Assets and
Current Liabilities.
12. Shine Limited has a current ratio 4.5:1 and quick ratio 3:1; if the stock is 36,000, calculate current
liabilities and current assets.
13. Current liabilities of a company are Rs. 75,000. If Current ratio is 4 : 1 and liquid ratio is 1:1,
calculate value of current assets, liquid assets and stock.
14. From the following information calculate
(i)Gross Profit Ratio (ii) Inventory Turnover Ratio
(iii) Current Ratio (iv) LiquidRatio
(v) Net Profit Ratio (vi) Working Capital Ratio

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Prof. Harsh Shah (Accounts, Economics, Commerce) 9022039186
Prof. Darshit Shah (Math) 8080044710
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15. Compute
i. Gross Profit Ratio,
ii. Working Capital Turnover Ratio,
iii. Dept Equity Ratio and
iv. Proprietary Ratio from the following information

16. Calculate Stock Turnover Ratio if Opening Stock is Rs. 76,250, Closing Stock is 98,500, Sales is Rs.
5,20,000, Sales Return is Rs.20,000, Purchase is Rs. 3,22,250.

17. A trading firm’s average stock is ? 20,000 (cost). If the stock turnover ratio is 8 times and the firm sells
goods at a profit of 20% on sales, ascertain the profit of the firm. 18. You are able to collect the following
information about a company for two years

Calculate Stock Turnover Ratio and Debtor Turnover Ratio if in the year 2004 stock in trade increased by
Rs. 2,00,000.

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Prof. Harsh Shah (Accounts, Economics, Commerce) 9022039186
Prof. Darshit Shah (Math) 8080044710
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18. The following Balance Sheet and other information, calculate following ratios
(i) Debt Equity Ratio (ii) Working Capital Turnover Ratio
(iii) Trade receivables Turnover Ratio

LIABILITIES AMOUNT (Rs.) ASSETS AMOUNT

(Rs.)
General Reserve 80,000 Preliminary Expenses 20,000
Profit and Loss 120,000 Cash 100,000
Loan @ 15% 240,000 Stock 80,000
Bills Payable 20,000 Bills Receivables 40,000
Creditors 80,000 Debtors 140,000
Share Capital 200,000 Fixed Assets 360,000
740,000 740,000

19. From the following,

Calculate
(a) Debt Equity Ratio (b) Total Assets to Debt Ratio (c) Propietory Ratio.

20. Cost of Goods Sold is 1 1,50,000 Operating expenses are Rs. 60,000. Sales is Rs. 2,60,000 and Sales
Return is Rs. 10,000. Calculate Operating Ratio.
21. From the fotlowing information calcutate Gross Profit Ratio, Stock Turnover Ratio and Debtors
Turnover Ratio.

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Prof. Harsh Shah (Accounts, Economics, Commerce) 9022039186
Prof. Darshit Shah (Math) 8080044710
 EDUNIQUE TUTORIALS
22. From the following information calculate:
(i)Gross Profit Ratio (ii) Inventory Turnover Ratio
(iii) Current Ratio (iv) Liquid Ratio
(v) Net Profit Ratio (vi) Working capital Ratio:

Rs

Revenue from Operations 25,20,000

Net Profit 3,60,000

Cast of Revenue from Operations 19,20,000

Long-term Debts 9,00,000

Trade Payables 2,00,000

Average Inventory 8,00,000

Current Assets 7,60,000

Fixed Assets 14,40,000

Current Liabilities 6,00,000

Net Profit before Interest and Tax 8,00,000

23. Compute Gross Profit Ratio, Working Capital Turnover Ratio, Debt Equity Ratio and Proprietary
Ratio from the following information:

Rs
Paid-up Share Capital 5,00,000
Current Assets 4,00,000
Revenue from Operations 10,00,000
13% Debentures 2,00,000
Current Liabilities 2,80,000

Cost of Revenue from Operations 6,00,000

24. Calculate Inventory Turnover Ratio if:Inventory in the beginning is Rs 76,250, Inventory at the end is
98,500, Gross Revenue from Operations is Rs 5,20,000, Return Inwards is Rs 20,000, Purchases is Rs
3,22,250.

FOR ADMISSIONS CONTACT

Prof. Harsh Shah (Accounts, Economics, Commerce) 9022039186
Prof. Darshit Shah (Math) 8080044710
 EDUNIQUE TUTORIALS
25. Calculate Inventory Turnover Ratio from the data given below:

Rs
Inventory at the beginning of the year 10,000
Stock* at the end of the year 5,000
Carriage 2,500
Revenue from Operations 50,000

Purchases 25,000

26. A trading firm’s average inventory is Rs 20,000 (cost). If the inventory turnover ratio is 8 times and
the firm sells goods at a profit of 20% on sale, ascertain the profit of the firm.
27. You are able to collect the following information about a company for two years:

2015-16 2016-17
Book Debts on Apr. 01 Rs 4,00,000 Rs 5,00,000

Rs 5,60,000
Book Debts on Mar. 31

Rs 6,00,000 Rs 9,00,000
Stock in trade on Mar. 31

Revenue from Rs 3,00,000 Rs 24,00,000

Operations (at gross profit of 25%)

Calculate Inventory Turnover Ratio and Trade Receivables Turnover Ratio if in the year 2015-16
stock in trade increased by Rs 2,00,000.

28. The following Balance Sheet and other information, calculate following ratios:
(i) Debt-Equity Ratio (ii) Working Capital Turnover Ratio
FOR ADMISSIONS CONTACT
Prof. Harsh Shah (Accounts, Economics, Commerce) 9022039186
Prof. Darshit Shah (Math) 8080044710
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(iii) Trade Receivables Turnover Ratio
Balance Sheet as at March 31, 2017
Particulars Note No. Rs.

I. Equity and Liabilities: 1. Shareholders’ funds

a) Share capital
10,00,000
b) Reserves and surplus 9,00,000
2. Non-current
Liabilities
a) Long-term borrowings 12,00,000

3. Current Liabilities
a) Trade payables Total 5,00,000
36,00,000
II. Assets
1. Non-current Assets
a) Fixed assets Tangible assets
18,00,000
2. Current Assets
a) Inventories 4,00,000
b) Trade Receivables 9,00,000
c) Cash and cash equivalents 5,00,000
Total
36,00,000

Additional Information: Revenue from Operations Rs. 18,00,000

29. From the following information, calculate the following ratios: i) Quick
Ratio ii) Inventory Turnover Ratio iii) Return on Investment
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Prof. Harsh Shah (Accounts, Economics, Commerce) 9022039186
Prof. Darshit Shah (Math) 8080044710
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Rs.
Inventory in the beginning 50,000

Inventory at the end 60,000

Revenue from operations 4,00,000

Gross Profit 1,94,000

Cash and Cash Equivalents 40,000

Trade Receivables 1,00,000

Trade Payables 1,90,000
Other Current 70,000
Liabilities
Share Capital 2,00,000
Reserves and Surplus 1,40,000
30. Calculate Inventory Turnover Ratio in each of the following alternative cases: Case 1: Cash Sales
25% of Credit Sales; Credit Sales ₹3,00,000; Gross Profit 20% on Revenue from Operations, i.e., Net
Sales; Closing Inventory ₹1,60,000; Opening Inventory ₹40,000.
Case 2: Cash Sales 20% of Total Sales; Credit Sales ₹4,50,000; Gross Profit 25% on Cost; Opening
Inventory ₹37,500; Closing Inventory ₹1,12,500.
31. Calculate Trade Receivables Turnover Ratio
Credit Revenue from Operations, i.e., Net Credit
1,20,000
Sales for the year
Debtors 12,000
Billls Receivable 8,000

32. Closing Trade Receivables ₹ 1,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade
Receivables over Opening Trade Receivables ₹ 40,000; Revenue from Operations, i.e., Net Sales ₹
6,00,000. Calculate Trade Receivables Turnover Ratio.

33. ₹ 1,75,000 is the Credit Revenue from Operations, i.e., Net Credit Sales of an enterprise. If Trade
Receivables Turnover Ratio is 8 times, calculate Trade
Receivables in the Beginning and at the end of the year. Trade Receivables at the end is ₹ 7,000
more than that in the beginning.

34. A firm normally has trade Receivables equal to two months' credit Sales. During the coming year it
expects Credit Sales of ₹ 7,20,000 spread evenly over the year (12 months). What is the estimated
amount of Trade Receivables at the end of the year?

35. From the following information, calculate Opening and Closing Trade Receivables, if Trade
Receivables Turnover Ratio is 3 Times:
i. Cash Revenue from Operations is 1/3rd of Credit Revenue from Operations.
ii. Cost of Revenue from Operations is ₹3,00,000.
iii. Gross Profit is 25% of the Revenue from Operations.
FOR ADMISSIONS CONTACT
Prof. Harsh Shah (Accounts, Economics, Commerce) 9022039186
Prof. Darshit Shah (Math) 8080044710
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iv. Trade Receivables at the end are 3 Times more than that of in the beginning.

36. From the following information, calculate Working Capital Turnover Ratio:

₹
Cost of Revenue from Operations (Cost of Goods Sold) 10,00,000
Current Assets 5,00,000
Current Liabilities 3,00,000
37. Revenue from Operations: Cash Sales ₹ 5,00,000; Credit Sales ₹ 6,00,000; Sales Return ₹ 1,00,000.
Current Assets ₹ 3,00,000; Current Liabilities ₹ 1,00,000. Calculate Working Capital Turnover Ratio.

38. Calculate Working Capital Turnover Ratio from the following information: Revenue from
Operations ₹ 30,00,000; Current Assets ₹ 12,50,000; Total Assets ₹ 20,00,000; Non-current
Liabilities ₹ 10,00,000, Shareholders' Funds ₹ 5,00,000.

39. Compute Gross Profit Ratio from the following information:

Revenue from Operations, i.e., Net Sales = ₹4,00,000; Gross Profit 25% on Cost.
40. Calculate Gross Profit Ratio from the following data:
Cash Sales are 20% of Total Sales; Credit Sales are ₹5,00,000; Purchases are ₹4,00,000;
Excess of Closing Inventory over Opening Inventory ₹25,000.
41. (i) Revenue from Operations: Cash Sales ₹4,20,000; Credit Sales ₹6,00,000; Return ₹20,000. Cost of
Revenue from Operations or Cost of Goods Sold ₹8,00,000.
Calculate Gross Profit Ratio.
(ii) Average Inventory ₹1,60,000; Inventory Turnover Ratio is 6 Times; Selling Price 25% above cost.
Calculate Gross Profit Ratio.
(iii)Opening Inventory ₹1,00,000; Closing Inventory ₹60,000; Inventory Turnover Ratio 8 Times; Selling
Price 25% above cost. Calculate Gross Profit Ratio.
42. Operating Ratio 92%; Operating Expenses ₹94,000; Revenue from
Operations ₹6,00,000; Sales Return ₹40,000. Calculate Cost of Revenue from Operations (Cost
of Goods Sold).

43. From the following, calculate (a) Debt Equity Ratio (b) Total Assets to Debt Ratio (c) Proprietary
Ratio.

Rs

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Prof. Harsh Shah (Accounts, Economics, Commerce) 9022039186
Prof. Darshit Shah (Math) 8080044710
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Equity Share Capital 75,000
Preference Share Capital 25,000
General Reserve 45,000
Accumulated Profits 30,000
Debentures 75,000
Sundry Creditors 40,000

Outstanding Expenses 10,000

Cost of Revenue from Operations is Rs 1,50,000. Operating expenses are Rs 60,000. Revenue from
Operations is Rs 2,50,000. Calculate Operating Ratio.
44. The following is the summerised transactions and Statement of Profit and Loss Account for the year
ending March 31, 2007 and the Balance Sheet as on the basis of following information, calculate:
(i) Gross Profit Ratio (ii) Current Ratio (iii) Acid Test Ratio (iv) Inventory Turnover Ratio
Rs.
Gross Profit 50,000
Revenue from Operations 1,00,000

Inventory 15,000
Trade Receivables 27,500
Cash and Cash 17,500
Equivalents
Current Liabilities 40,000
Land & Building 50,000
Plant & Machinery 30,000
Furniture 20,000

45. From the following information

calculate i) Gross Profit Ratio ii) Inventory Turnover Ratio iii) Trade Receivables Turnover Ratio.
Rs
Revenue from 3,00,000
Operations

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Prof. Harsh Shah (Accounts, Economics, Commerce) 9022039186
Prof. Darshit Shah (Math) 8080044710
EDUNIQUE TUTORIALS
Cost of Revenue from 2,40,000
Operations
Inventory at the 62,000
end
Gross Profit 60,000
Inventory in the 58,000
beginning
Trade Receivables 32,000

FOR ADMISSIONS CONTACT

Prof. Harsh Shah (Accounts, Economics, Commerce) 9022039186
Prof. Darshit Shah (Math) 8080044710