126 :- Capital Employed Rs 30,00,000; Working Capital Rs 5,00,000; Cost of Revenue from Operations Rs 40,00,000; Gross Profit 25% of Cost. Calculate Fixed Assets Turnover Ratio.
Solution :–
Net Fixed Assets = Capital Employed – Working Capital
= 30,00,000 — 5,00,000
= Rs 25,00,000
Gross Profit = Revenue from Operation – Cost of Revenue from Operation
25/100 x 40,00,000 = Revenue from Operation – 40,00,000
Revenue from Operation = 40,00,000 + 10,00,000
= Rs 50,00,000
Fixed Assets Turnover Ratio = Revenue from Operation/Net Fixed Assets
= 50,00,000/25,00,000
= 2 Times