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; B/R : Rs.2000 ;
Debtors:Rs.8,000; Stock: Rs.10,000; Cash: Rs.6000; Creditors:Rs.12,000; B/P:Rs.8,800
Answers
=26000/20800=1.25
Net Profit ratio =net profit/net sales *100
=6000/140000*100=4.3%
Answer:
Current Ratio = 1.25 times
Net Profit Ratio = 4.28%
Gross Profit Ratio = 7.14%
Explanation:
Given:
Net Sales : Rs.1,40,000
Gross Profit : Rs.10,000
Net Profit : Rs.6,000
B/R : Rs.2000
Debtors : Rs.8,000
Stock : Rs.10,000
Cash : Rs.6000
Creditors : Rs.12,000
B/P : Rs.8,800
Find:
(i) Current Ratio
(ii) Net Profit Ratio
(iii) Gross Profit Ratio
Computation:
(i) Current Ratio = Current assets / Current liabilities
Current Ratio = [B/R + Debtor + Stock + Cash] / [Creditor + B/P]
Current Ratio = 26,000 / 20,800
Current Ratio = 1.25 times
(ii) Net Profit Ratio = [Net Profit / Net Sales]100
Net Profit Ratio = [6,000 / 1,40,000]100
Net Profit Ratio = 4.28%
(ii) Gross Profit Ratio = [Gross profit / Net Sales]100
Gross Profit Ratio = [10,000 / 1,40,000]100
Gross Profit Ratio = 7.14%