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Stock Turnover Ratio Solution – 1 (Problem related to Revenue Ratio) 1 Gross Profit Margin = Gross profit
Lack of ability to resolve problems: Their role is essentially indicative and of whistle blowing and not providing a solution to the problem 3 Lack of
It needs to be observed that accounting ratios exhibit relationship, Lack of ability to resolve problems: Their role is essentially indicative and of
Accounting ratios are calculated from the financial statements to arrive at meaningful conclusions pertaining to liquidity, profitability, and solvency
6th Sem/Financial Reporting Financial Statement Analysis/Ratio/Problems and Solutions Notes to Accounts 1 Share Capital:
× It may not represent the correct picture of the business × Only accounting information is used while analyzing and interpreting the results of ratio analysis
Solution – sum 1 Current Ratio = Current Assets Current Liabilities Current Assets =
ACCOUNTING RATIOS To be Discussed only in classroom (Sol-1) (a) Workings Notes: 1 Net Working Capital = Current Assets – Current Liabilities
Financial Expenses Net Profit c/d 76,250 Solution – 1 (Problem related to Revenue Ratio) 1 Solution – 2 (Problem related to Balance Sheet Ratio) 1
MODULE - 6A Analysis of Financial Statements Notes 23 Accounting Ratios - I ACCOUNTANCY Solution Current Ratio = Current Assets Current liabilities
explain the meaning and objectives of accounting ratios Administrative Expenses Ratio Solution: (i) Gross Profit Ratio= Gross Profit X 100 Problem 4
The higher the ratio, the worse the business is at getting debtors to pay on time and the more likely it is to have a high level of bad debts and cash problems
financial ratios, and the Du Pont ratio method In addition, you will One solution to the problem of finding good comparison numbers is to create your own list
Discuss use of financial ratios to analyse the financial statement ❒ in times of financial difficulty inventory may be saleable only at liquidation value But