124 :- Fixed Assets (at Cost) Rs 7,00,000; Accumulated Depreciation Rs 1,00,000. Credit Revenue from Operation Rs 17,00,000; Cash Revenue from Operations Rs 1,00,000. Calculate Fixed Assets Turnover Ratio.
Solution :-
Total Revenue from Operations = Credit Revenue from Operations + Cash Revenue from Operations
= 17,00,000 + 1,00,000
= Rs 18,00,000
Net Fixed Assets = Fixed Assets (Cost) – Accumulated Depreciation
= 7,00,000 – 1,00,000
= Rs 6,00,000
Fixed Assets Turnover Ratio = Revenue from Operations/Fixed Assets (Net)
= 18,00,000/6,00,000
= 3 Times