Question 126: Capital Employed `2,50,000, Working Capital `50,000, Cost of Revenue from Operations `8,00,000,
Gross Profit `2,00,000. Calculate Fixed Assets Turnover Ratio.
Answer:
Fixed Assets Turnover Ratio= Revenue from Operations/ Net Fixed Assets
Fixed Assets Turnover Ratio= 10,00,000/ 2,00,000= 5 Times
Working note:
1. Revenue from operation= Cost of Revenue from Operations+ Gross Profit
Revenue from operation= 8,00,000+ 2,00,000=10,00,000
2. Net Fixed Assets= Capital Employed - Working Capital
Net Fixed Assets= 2,50,000- 50,000
Net Fixed Assets= 2,00,000
Question 127: Following information is of Raja Ltd. for 2 yea` Calculate Fixed Assets Turnover Ratio:
|
|
2021-22 ` |
2022-23 ` |
|
Fixed Assets at written down value |
3,00,000 |
6,00,000 |
|
Cost of Revenue from Operations |
12,00,000 |
18,00,000 |
Answer:
Fixed Assets Turnover Ratio= Revenue from Operations/ Net Fixed Assets
2021-22
Fixed Assets Turnover Ratio= 12,00,000 / 3,00,000 = 4 Times
2022-23
Fixed Assets Turnover Ratio= 18,00,000/ 6,00,000= 3 Times
Question 128: Capital Employed 30,00,000; Working Capital 5,00,000; Cost of Revenue from Operations 40,00,000;
Gross Profit 25% of Cost. Calculate Fixed Assets Turnover Ratio.
Answer:
Net Assets Turnover Ratio= Revenue from Operations/Capital Employed
Net Assets Turnover Ratio= 50,00,000/25,00,000= 2 Times
Working Notes:
Net fixed assets= 30,00,000-5,00,000=25,00,000
Gross Profit = 25% of 40,00,000 = 10,00,000
Revenue= Cost + Gross Profit
Revenue= 40,00,000 +10,00,000 = 50,00,000
Net Assets Turnover Ratio
Question 129: Based on the following information, calculate Net Assets or Capital Employed Turnover Ratio:
Shareholders' Funds `20,00,000; Equity Share Capital `10,00,000; Reserves and Surplus `10,00,000;
8% Debentures `10,00,000 and Revenue from Operations `75,00,000.
Answer:
Capital Employed Turnover Ratio= Revenue from Operations/ Capital Employed
Capital Employed Turnover Ratio= 75,00,000/30,00,000
Capital Employed Turnover Ratio= 2.5 Times
Working note:
1. Revenue from Operations = `75,00,000.
2. Capital Employed= Shareholders' Funds + 8% Debentures
Capital Employed= 20,00,000 +10,00,000
Question 130: Property, Plant and Equipment and Intangible Assets (at cost) ` 30,00,000; Accumulated Depreciation `5,00,000; Trade Investments `2,50,000; Current Assets `11,00,000; Current Liabilities `8,50,000; Cash Revenue from Operations `10,00,000; Credit Revenue from Operations `40,00,000.
Calculate Net Assets Turnover Ratio.
Answer:
Capital Employed Turnover Ratio= Revenue from Operations/ Capital Employed
Capital Employed Turnover Ratio= 50,00,000/30,00,000
Capital Employed Turnover Ratio= 1.67 Times
Working note:
1. Revenue from Operations = Cash Revenue from Operations + Credit Revenue from Operations
Revenue from Operations = 10,00,000+40,00,000=50,00,000
2. Capital Employed= (Property, Plant and Equipment and Intangible Assets (at cost) -Accumulated Depreciation) + Trade Investments +Working Capital
Capital Employed= (30,00,000-5,00,000)+2,50,000+2,50,000
Capital Employed=30,00,000
3. Working Capital= Current Assets - Current Liabilities
Working Capital= 11,00,000- 8,50,000=2,50,000
Ts Grewal Solution 2024-2025
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Class 12 / Volume – III
Chapter 3 – Accounting Ratio