125 :- Capital Employed Rs 2,50,000; Working Capital Rs 50,000, Cost of Revenue from Operations Rs 8,00,000. Gross Profit Rs 2,00,000. Calculate Fixed Assets Turnover Ratio.
Solution :-
Revenue from Operation = Rs 10,00,000
Capital Employed + Current Liabilities = Net Fixed Assets + Current Assets
Net Fixed Assets = Capital Employed + Current Liabilities – Current Assets
= Capital Employed – (Current Assets – Current Liabilities)
= Capital Employed – Working Capital
= 2,50,000 – 50,000
= Rs 2,00,000
Fixed Assets Turnover Ratio = Revenue from Operation/Net Fixed Assets
= 10,00,000/2,00,000
= 5 Times