131 :- Property, Plant and Equipement and Intangible Assets Rs 10,00,000; Working Capital Rs 5,00,000; Cost of Revenue from Operations Rs 50,00,000; Gross Profit 20% of Cost.
Calculate Net Assets or Capital Employed Turnover Ratio.
Solution :-
Gross Profit = Revenue from Operation – Cost of Revenue from Operation
20/100 x 50,00,000 = Revenue from Operation – 50,00,000
Revenue from Operation = 50,00,000 + 10,00,000
= Rs 60,00,000
Capital Employed + Current Liabilities = Net Fixed Assets + Current Assets
Capital Employed = Net Fixed Assets + (Current Assets – Current Liabilities)
= Net Fixed Assets + Working Capital
= 10,00,000 + 5,00,000
= Rs 15,00,000
Net Assets Turnover Ratio = Revenue from Operation/Capital Employed
= 60,00,000/15,00,000
= 4 Times