Ratio Analysis Techniques

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NICE INFORMATION .... THANKS 4R SHARING ......


Replies (19)

NICE INFORMATION .... THANKS 4R SHARING ......


Hi Sudhakar,


Should the denominator in "gross profit margin" be net of excise, sales tax, and freight.

 

Thanks,

Rahul

Thank you Gi.

Can you tell me how to solve the Q43 of Ratio Analysis of CA Ashish Kalra.

Dividend Received from Investments 5000

Depreciation on Fixed Assets 15000

Contribution to PM relief fund 10000

Loss on sale of Fixed Assets 10000

Administration and Selling Expenses 56000.

Net Profit 94000. Goods are sold at cost plus 50%.Find out the operating ratio.

Ans(79.81%)

current ratio 2.5

quick ratio 1.3

proprietary ratio 0.06

Gross profit to sales 10%

Debtor velocity 40 Days

sales 273000

working capital 120000

bank overdraft 215000

share capital 250000

closing stock is 10% more than opening stock

Netprofit 10% of Proprietary fund.

Prepare Trading, profit & loss Account and Balance sheet


CCI Pro

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