Illustration 2 Calculate quick ratio from the information given in illustration 1 Solution: Quick Ratio = Quick Assets Current Liabilities Quick Assets =
MODULE - 6A Analysis of Financial Statements Notes 23 Accounting Ratios - I ACCOUNTANCY Solution Current Ratio = Current Assets Current liabilities
Calculate (i) current ratio and (ii) liquid ratio Solution : (i) Current Ratio = `90,000 `60,000 Current Assets
Operating (Net) Profit Ratio 6 Stock Turnover Ratio Solution – 1 (Problem related to Revenue Ratio) 1 Gross Profit Margin =
Ratio Analysis A popular tool used to conduct a quantitative analysis of information pertaining to company's financial statements Generally, accounting
It needs to be observed that accounting ratios exhibit relationship, if any, between whistle blowing and not providing a solution to the problem
interpret a full range of accounting ratios 14 1 Introduction Solution The components of the working capital cycle are: Inventories
explain the meaning and objectives of accounting ratios Solution (i) Current Ratio= Current Assets Current Liabilities
MODULE - 6A Analysis of Financial Statements Notes 23 Accounting Ratios - I ACCOUNTANCY Solution Current Ratio = Current Assets Current liabilities
211 Accounting Ratios Solution Liquidity Ratio = Liquid Assets Current Liabilities Liquidity Assets = Current assets –(Inventories + Prepaid expenses +
of illness Similarly, the financial analyst should also analyse the accounting ratios to (4) Comment on these ratios Solution (1) Current Ratio = Current Assets