178 :- Calculate following ratios on the basis of the following information :
(a) Gross Profit Ratio; (b) Current Ratio; (c) Acid Test Ratio; and (d) Inventory Turnover Ratio
Solution :-
(a) Gross Profit Ratio = Gross Profit/Revenue from Operation x 100
= 50,000/1,00,000 x 100
= 50%
(b) Current Assets = Inventory + Cash and Cash Equivalents + Trade Receivables
= 15,000 + 17,500 + 27,500
= Rs 60,000
Current Ratio = Current Assets/Current Liabilities
= 60,000/40,000
= 1.5 Times
(c) Quick Assets = Current Assets – Inventory
= 60,000 – 15,000
= Rs 45,000
Quick Ratio = Quick Assets/Current Liabilities
= 45,000/40,000
= 1.125 : 1
(d) Cost of Goods Sold = Revenue from Operation – Gross Profit
= 1,00,000 – 50,000
= Rs 50,000
Inventory Turnover Ratio = Cost of Goods Sold/Average Inventory
= 50,000/15,000
= 3.33 Times