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Accounting Ratios 3.53
28. From the following Balance Sheet and other information, calculate any two of the following ratios:
(i) Debt to Equity Ratio;
(ii) Working Capital Turnover Ratio; and
(iii) Trade Receivables Turnover Ratio.

BALANCE SHEET
as at 31st March, 2024
Particulars `

I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1,00,000
(b) Reserves and Surplus 90,000
2. Non-Current Liabilities
Long-term Borrowings (Loan @ 15%) 1,20,000
3. Current Liabilities
Trade Payables 50,000
Total 3,60,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets—Property, Plant and Equipment 1,80,000
2. Current Assets
(a) Inventories 40,000
(b) Trade Receivables 90,000
(c) Cash and Cash Equivalents 50,000
Total 3,60,000

Other Information:
Sales during the year amounted to ` 1,80,000.
[Ans.: (i) Debt to Equity Ratio = 0.63 : 1; (ii) Working Capital Turnover Ratio = 1.38 Times;
(iii) Trade Receivables Turnover Ratio = 2 Times.]
29. Following information has been extracted from the books of Elite Electricals:
Revenue from Operations (Net Sales) ` 30,00,000; Cost of Revenue from Operations (Cost of Goods Sold)
` 20,00,000; Net Profit ` 3,00,000; Current Assets ` 6,00,000; Current Liabilities ` 2,00,000; Paid-up Share
Capital ` 5,00,000; Debentures ` 2,50,000. Compute any two ratios based on the above information:
(i) Gross Profit Ratio; (ii) Working Capital Turnover Ratio; and (iii) Debt to Equity Ratio.
1
[Ans.: (i) Gross Profit Ratio = 33 % (ii) Working Capital Turnover Ratio = 7.5 Times;
3
(iii) Debt to Equity Ratio = 0.31 : 1.]
30. Current Ratio 2.5; Working Capital ` 60,000. Calculate amount of Current Assets and Current
Liabilities. [Ans.: Current Assets = ` 1,00,000; Current Liabilities = ` 40,000.]
31. Net Sales of M.S. Limited during the year were ` 1,80,000. If Trade Receivables Turnover Ratio is 4 times,
calculate Trade Receivables in the beginning and at the end of the year. You are informed that closing
Trade Receivables are two times in comparison to opening Trade Receivables.
[Ans.: Trade Receivables in the beginning = ` 30,000; Trade Receivables at the end = ` 60,000.]