On the basis of the following information, calcualte: (i) Debt to Equity Ratio; and (ii) Working Capital Turnover Ratio.
On the basis of the following information, calcualte:
(i) Debt to Equity Ratio; and
(ii) Working Capital Turnover Ratio.
[Ans.: (i) Debt to Equity Ratio = 0.5 : 1, (ii) Working Capital Turnover Ratio = 12 Times.]
| Revenue from Operations: (a) Cash Sales (b) Credit Sales | ₹ 40,00,000 ₹ 20,00,000 |
| Cost of Goods Sold | ₹ 35,00,000 |
| Other Current Assets | ₹ 8,00,000 |
| Current Liabilities | ₹ 4,00,000 |
| Paid-up Share Capital | ₹ 17,00,000 |
| 6% Debentures | ₹ 3,00,000 |
| 9% Loan from Bank | ₹ 7,00,000 |
| Debentures Redemption Reserve | ₹ 3,00,000 |
| Closing Inventory | ₹ 1,00,000 |
Anurag Pathak Changed status to publish August 15, 2023
