(b) From the information given below, calculate Inventory days (v) Receivables Days (vi) Debt to Equity Ratio and (vii)Gross Profit Ratio.
Gross Profit of the year is Rs. 80,000 which is 64% of the Total credit Sales, Cash Sales Rs. 25,000, Fixed
Assets Rs. 2,00,000; Closing Inventory Rs. 10,000; Debtors Rs.60,000 and Cash Rs.40,000; Current
Liabilities Rs. 30,000; Share Capital Rs. 1,70,000; 12% Debenture Rs. 60,000.
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Inventory Turnover Ratio 5 Times, Total sales ₹ 2, 00,000, Gross Profit Ratio 25%. ... Closing Trade Receivables ₹ 1,00,000; Cash Sales being 25% of Credit Sales; ... Credit Sales = 8,00,000 − 20,000= Rs 7,80,000.
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