179 :- Calculate following ratios on the basis of the given information :
(a) Current Ratio; (b) Acid Test Ratio; (c) Operating Ratio; and (d) Gross Profit Ratio.
Solution :-
(a) Current Ratio = Current Assets/Current Liabilities
= 3,50,000/1,75,000
= 2 : 1
(b) Acid Test Ratio = (Current Assets – Inventory)/Current Liabilities
= (3,50,000 – 1,50,000)/1,75,000
= 2,00,000/1,75,000
= 1.14 : 1
(c) Operating Ratio = (Cost of Goods Sold + Operating Expenses)/Revenue from Operation x 100
= (3,00,000 + 2,00,000)/6,00,000 x 100
= 5,00,000/6,00,000 x 100
= 83.33%
(d) Gross Profit = Revenue from Operation – Cost of Revenue from Operation
= 6,00,000 – 3,00,000
= Rs 3,00,000
Gross Profit Ratio = Gross Profit/Revenue from Operation x 100
= 3,00,000/6,00,000 x 100
= 50%