Financial Statements

Ratios

Easy

What is Gross Profit Ratio if?

Total sales Rs. 6,00,000

Sales returns Rs. 50,000

Cost of goods sold Rs. 4,40,000

20%

25%

30%

✅ Correct Option: 1

Net Sales = $6{,}00{,}000 - 50{,}000 = 5{,}50{,}000$ .

Gross Profit = Net Sales - Cost of Goods Sold = $5{,}50{,}000 - 4{,}40{,}000 = 1{,}10{,}000$ .

Gross Profit Ratio = $\frac{1{,}10{,}000}{5{,}50{,}000} \times 100 = 20\%$ .

2025: 13 May Shift 2

Calulate Current Ratio from the following information:

2025: 15 May Shift 2

To calculate interest coverage ratio; steps followed will be

Net Profit after tax Rs. 60,000; 12% Long-term debt 20,00,000; and Tax rate 40%.

(A) Calculate Net Profit before tax

(B) Divide Net Profit before Interest and Tax by Interest on long-term debt

(D) Calculate Interest on Long-term Debt

Choose the correct answer from the options given below:

2025: 14 May Shift 1

The _________ may indicate that the firm is experiencing stockouts and lost sales.

2025: 15 May Shift 2

On the basis of information given below the closing Inventory will be

Opening inventory 20,000

average inventory 40,000

2022: 20 July Shift 1

Calculate Current Ratio from the following given information.

Liquid Ratio 0.75 : 1

Current Liabilities Rs. 1,80,000

Prepaid Expenses Rs. 20,000

Inventory Rs. 47,250

2022: 23 Aug Shift 2

For calculating EPS, the following order will be followed.

(A) Calculate number of equity shares

(B) Calculate earning available for equity share holders

(D) Compute EPS

Choose the correct answer from the options given below :

Solution