184 :- From the following information, calculate:
(i) Gross Profit Ratio;
(ii) Working Capital Turnover Ratio; and
(iii) Proprietary Ratio.
Solution :-
(a) Revenue from Operation = Cash Sales + Credit Sales
= 75/100 x 3,00,000 + 3,00,000
= 2,25,000 + 3,00,000
= Rs 5,25,000
Gross Profit = Revenue from Operation – Cost of Goods Sold
= 5,25,000 – 6,80,000
= – Rs 1,55,000
Gross Profit Ratio = Gross Profit/Revenue from Operation
= -1,55,000/5,25,000 x 100
= -29.52%
(b) Working Capital = Current Assets – Current Liabilities
= 5,00,000 – 2,90,000
= Rs 2,10,000
Revenue from Operation = Rs 5,25,000
Working Capital Turnover Ratio = Revenue from Operation/Working Capital
= 5,25,000/2,10,000
= 2.5 Times
(c) Proprietors Funds = Paid up Capital + Net Profit for the year
= 8,00,000 + 1,55,000
= Rs 9,55,000
Total Assets = Paid up Capital + Net Profit for the year + 9% Debentures + Current Liabilities
= 8,00,000 + 1,55,000 + 3,40,000 + 2,90,000
= Rs 15,85,000
Proprietary Ratio = Proprietor’s Funds/Total Assets x 100
= 9,55,000/15,85,000 x 100
= 60.25%