RATIO ANALYSIS
Qs. 1 From the following Balance Sheets of Radhye Shyam Ltd., as on 31st March 2012 and 2013, calculate
the following ratios:(1)
Current Ratio,
(2)
Quick Ratio,
(3)
Debt Equity Ratio
(4)
Total Assets to Debt Ratio
(5)
Proprietary Ratio
Particulars
Note No.
2012-13 (`)
2011-12 (`)
EQUITY AND LIABILITIES
(1) Shareholders’ Funds
(a) Share capital
20,00,000
15,00,000
(b) Reserves and Surplus (General Reserve)
Surplus, i.e. Balance in Statement of Profit and Loss
3,00,000
4,00,000
(2) Non Current Liabilities
Long Term Borrowings
9,00,000
6,00,000
(3) Current Liabilities
Trade Payables
3,00,000
2,00,000
Total
35,00,000
27,00,000
ASSETS
(1) Non Current Assets
Fixed assets
(i)
Tangible assets
20,00,000
15,00,000
(ii)
Intangible Assets
9,00,000
6,00,000
(2) Current Assets
(a)
Inventories
3,00,000
4,00,000
(b)
Cash and Cash equivalents
3,00,000
2,00,000
Total
35,00,000
27,00,000
Qs. 2 Following are the Balance Sheets of Govind Gopal Ltd., as on 31st March 2011 and 2012. Calculate
following ratios:(i)
Current Ratio
(ii)
Quick Ratio
(iii)
Debt Equity Ratio
(iv)
Total Assets to Debt Ratio
(v)
Proprietary Ratio
Particulars
Note No.
2012-13 Rs.
2011-12 Rs.
EQUITY AND LIABILITIES
(1) Shareholders Funds
(a) Share capital
9,00,000
6,00,000
(b) Reserves and Surplus
Surplus, i.e. Balance in Statement of Profit and Loss
1,80,000
1,20,000
(2) Non Current Liabilities
Long term borrowings (Public Deposits)
2,85,000
1,50,000
(3) Current Liabilities
Trade Payable
2,70,000
2,25,000
Other Current Liabilities (Outstanding Expenses)
1,05,000
75,000
Total
17,40,000
11,70,000
ASSETS
(1) Non Current Assets
(a) Fixed assets
(i) Tangible assets (Land and Building)
5,31,000
2,91,000
(ii) Intangible Assets (Goodwill)
1,80,000
2,70,000
(b) Long term Investments
1,95,000
1,20,000
(2) Current Assets
(a) Inventories
2,70,000
1,50,000
(b) Trade Receivables
3,60,000
1,50,000
(c) Cash and Cash equivalents
1,80,000
1,35,000
(e) Other Current Assets (Share issue Expenses)
-24,000
(Prepaid Expenses)
30,000
24,000
Total
17,40,000
11,70,000
Qs. 3
(i) From the following compute (a) Current Ratio (b) Quick Ratio
S.No.
Items
1
2
3
4
5
6.
Current Investments
Inventories
Trade Receivables
Short-term Borrowings
Trade Payables
Prepaid expenses
Amount
`
40,000
5,000
2,000
20,000
2,500
2,000
S.No.
Items
7
8
9
10
11
12
Short-Term Provisions
Other Current Liabilities
Short-term Loans & Advances
Tangible Fixed Assets
Cash & Cash Equivalents
Advance tax
Amount
`
3,000
5,000
4,000
1,00,000
10,000
8,000
(ii) From the following compute (a) Current Ratio (b) Quick Ratio
S.No.
Items
Amount
`
S.No.
Items
Amount
`
1
2
5
Total Assets
Shareholders Funds
Inventories
1,00,000
60,000
20,000
3
4
Non-Current Liabilities
Non-Current Assets
20,000
50,000
(iii)
Qs. 4
(i)
(ii)
(iii)
(iv)
Qs. 5
A company’s Inventory Turnover is 5 times. Inventory at the end is Rs. 20,000 more than that at the
beginning. Revenue from operations are Rs. 8,00,000. Rate of Gross Profit on cost is ¼. Current
Liabilities Rs. 2,40,000. Acid Test Ratio 0.75. Calculate Current Ratio.
The following information is provided to you
Debtor (Trade Receivable) turnover ratio : 4 time, Inventory Turnover Ratio : 8 times, Current Ratio :
3 , Average Debtors (Trade Receivable) : Rs. 1,80,000, Working Capital Turnover Ratio : 8 times
,Cash Sales(Revenue from operations) : 25% of total sales, Gross Profit Ratio : 33 1/3%, Closing
Stock(Inventory) Rs. 10,000 in excess of Opening Stock (Inventory), Based on the above information
calculate (a) Sales, (b) Cost of goods sold and (c) Closing stock(Inventory).
Calculate Working Capital Turnover Ratio from the following
S.No.
Items
Amount (`)
1.
Revenue from Operations
12,00,000
2.
Current Assets
5,00,000
3.
Total Assets
8,00,000
4.
Non Current Liabilities
4,00,000
5.
Shareholders’ Funds
2,00,000
Cash Sales(Revenue from operations) of a company is 1/3rd of credit Sales. Stock(Inventory)
Turnover Ratio is 5 times. Closing Stock(Inventory) is Rs. 8,000 more than opening stock and closing
debtors(Trade Receivable) are 2/3rd of opening debtors(Trade Receivable). Closing debtors(Trade
Receivable) are Rs. 40,000 and Opening stock(Inventory) was Rs. 60,000. Gross Profit is 20% on
Sales. Calculate Debtors(Trade Receivable) Turnover Ratio.
Calculate the amount of opening debtors and closing debtors from the following figures:
Debtors (Trade Receivable) turnover ratio 4 times
Cost of goods sold Rs. 6,40,000
Gross profit ratio 20%
Closing debtors (Trade Receivables) were Rs. 20,000 more than at the beginning.
Cash Sales being 33 1/3% of credit sales.
From the following compute:
a) Debt to Equity Ratio
b) Total Assets to Debt Ratio
c) Proprietary Ratio
S.No.
Items
Amount
`
1
2
3
4
5
Long-Term Borrowings
Long-Term Provisions
Current Liabilities
Non-Current Assets
Current Assets
1,00,000
50,000
25,000
1,80,000
45,000
Qs. 6
(i)
From the following calculate
(a) Net Profit Ratio
(b) Operating Profit Ratio
S.No.
1.
2.
3.
4.
5.
6.
7.
8.
Items
Revenue from Operations
Gross Profit
Office Expenses
Selling Expenses
Interest on Debentures
Accidental losses
Income from Rent
Commission received
Amount (`)
2,00,000
75,000
15,000
26,000
5,000
12,000
2,500
2,000
(ii) From the following calculate Return on Investment (or Return on Capital Employed)
S.No.
1.
2.
3.
4.
5.
6.
7.
Items
Share Capital
Reserves & Surplus
Net Fixed Assets
Non Current Trade Investments
Current Assets
12% Long term borrowings
Current Liabilities
ALL THE VERY BEST
Amount (`)
50,000
25,000
2,25,000
25,000
1,10,000
2,00,000
85,000