Question

(b) From the following particulars, you are required to calculate :
(i) Current Ratio
(ii) Net Profit Ratio
(iii) Gross Profit Ratio
Net Sales : Rs.1,40,000; Gross Profit :Rs.10,000; Net Profit :Rs.6,000; BR : Rs.2000 ;
Debtors:Rs.8,000; Stock: Rs.10,000; Cash: Rs.6000; Creditors:Rs.12,000; B/P:Rs.8,800​

Answer 1

Calculation of  (i) Current Ratio (ii) Net Profit Ratio (iii) Gross Profit Ratio

Explanation:

(i) Current Ratio = Current assets÷ Current liabilities

Current assets = B/R + Debtors + Stock + Cash    

                        Rs.2000 + Rs.8,000 +  Rs.10,000 + Rs.6000 = Rs.26000  

Current liabilities = Creditors +  B/P    

                              Rs.12,000 + Rs.8,800 = Rs.20800

Current Ratio = Rs.26000 ÷ Rs.20800 = 1.25: 1

(ii) Net Profit Ratio = Net Profit ÷ Net Sales × 100

                                 Rs.6,000 ÷ Rs.1,40,000 × 100 = 4.28%

(iii) Gross Profit Ratio = Gross Profit ÷  Net Sales × 100

                                      Rs.10,000 ÷  Rs.1,40,000 × 100 = 7.14%

To know more:

calculate :

(i) Current Ratio (ii) Net Profit Ratio (iii) Gross Profit Ratio

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