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From following information, Current ratio, Acid test ratio, Operating Ratio, Gross Profit Ratio will be:
Rs
Current Assets 35,000
Current Liabilities 17,500
Inventory 15,000
Operating Expenses 20,000
Revenue from Operations 60,000
Cost of Goods Sold 30,000
2:1; 1.14:1; 83.33%; 50%
3:1; 1.14:1; 80.33%; 40%
2.5:1; 1:1; 83.33%; 40%
None of the above
Current Ratio= Current Assets/Current Liabilities
Current Ratio= 35000/17500= 2:1
Acid Test Ratio=Liquid Assets/ Current Liabilities
Liquid Assets= Current Assets (-) Inventory
=35,000 (-) 15,000= 20,000/-
20,000/17500= 1.14:1
Operating Ratio= Cost of Goods sold + operating Expenses/Net revenue from operations x 100
= 30,000 +20,000/60,000 x 100= 83.33%
Gross Profit Ratio= Gross Profit/Net Revenue from Operations x 100
Gross Profit = Net revenue from operations- Cost of goods Sold
= 30,000
Gross Profit Ratio= 30,000/60,000 x 100 = 50%
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