175 :- From the given information, calculate :
(a) Trade Receivables Turnover Ratio,
(b) Current Ratio.
Solution :-
(a) Average Trade Receivables = Debtors + Bills Receivables
= 25,00,000 + 15,00,000
= Rs 40,00,000
Net Credit Revenue from Operations = Rs 80,00,000
Trade Receivables Turnover Ratio = Net Credit Revenue from Operation/Average Trade Receivables
= 80,00,000/40,00,000
= 2 : 1
(b) Current Assets = Debtors + Bills Receivables
= 25,00,000 + 15,00,000
= Rs 40,00,000
Current Liabilities = Creditors + Bills Payables
= 13,00,000 + 7,00,000
= Rs 20,00,000
Current Ratio = Current Assets/Current Liabilities
= 40,00,000/20,00,000
= 2 : 1