From the following data ,compute Total Assets Turnover Ratio: Fixed Assets ₹ 3,00,000 ,Accumulated Depreciation ₹ 1,00,000, Current Assets ₹ 2,00,000 Revenue from operations (Net sales ) ₹ 8,00,000.
Answered Feb 05, 2023
Total Assets Turnover Ratio` =("Revenue from Operations ")/("Total Assets ") = ("₹ 8,00,000")/("₹ 4,00,000)=2 times . Total Assets =Fixed Assets - Accmulated Depreciation)+Current Assets = ₹ (3,00,000 -1,00,000)+ ₹ 2,00,000 = ₹ 4,00,000 .
Current Assets = Rs. 1,20,000, Current Liabilities = Rs. 40,000.
Current Liabilities = Rs. 8,00,000/2 = Rs. 4,00,000 Quick Assets = Rs. 4,00,000 `xx` 1.5 = Rs. 6,00,000 Inventory = Current Assets - Quick Assets = Rs. 2,00,000* *It is...
Debt to Equity Ratio = `("Debt")/("Equity")=("Rs. 6,00,000")/("Rs. 2,00,000")=3 : 1`
(a) Trade Receivables (Debtors) Turnover Ratio `("Credit Revenue from Operations (Credit Sales)")/("Average Trade Receivables")` `=("Rs. 3,25,000")/("Rs. 70,000")=4.64` Times. Credit Revenue from Operations = Rs. 3,25,000 (WN). Average Trade Receivables =...
Capital employed turnover ratio `="Revence from Operations (Net sales )"/"Capital Employed " ` `=(₹ 20,00,000)/(₹ 12,00,000)`=1.67 Times Capital Employed =Net Fixed Assets +Trade Investment +Current Assets -Current Liabilities = (₹...
Fixed Assets Turnover Ratio`=(" Revenue from Operations")/("Net Fixed Assets")=( "₹ 54,00,000 ")/("18,00,000")`=3 times Revenue from Operations (Net Sales) Credit Sales +Cash Sales-Sales Return = ₹ 51,00,000+₹ 4,50,000-₹ 1,50,000= ₹ 54,00,000....
Capital Employed Turnover Ratio = 1.67 Times
Capital Employed Turnover Ratio = 4 Times
Current Liabilities ,(iii) Tatal Assets
i. Reducing Balance Method ii. Fixed Asset iii. Installation Charges iv. Profit on Sale of Asset v. Diminishing Balance Method
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