Question 126:
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
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
Net Assets Turnover Ratio
Question 128:
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 129:
From
the following information, calculate Net Assets Turnover Ratio:
Equity
Share Capital ₹15,00,000; Long-term Borrowings
₹30,00,000; Reserves and Surplus ₹5,00,000;
Non-current
Assets ₹32,00,000; Revenue from Operations
₹1,00,00,000.
Answer:
Calculate
Net Asset (Capital Employeed):
Net Assets
= Equity Share Capital + Reserves and Surplus + Long-term Borrowings − Non-current Assets
Net Assets
= (15,00,000+5,00,000+30,00,000
Net Assets =
₹50,00,000
Formula:
Net Assets Turnover Ratio=
Revenue from Operations ÷ Net Assets
Net Assets Turnover Ratio=
1,00,00,000 ÷ 50,00,000 = 2 Times
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 2025-2026
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Class 12 / Volume – III
Chapter 4 – Accounting Ratios