| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
| Gross Profit | 50,000 | Revenue from Operations | 1,00,000 |
| Inventory | 15,000 | Trade Receivables | 27,500 |
| Cash and Cash Equivalents | 17,500 | Current Liabilities | 40,000 |
SOLUTION
Gross Profit Ratio = Gross Profit / Revenue from Operations × 100
Gross Profit Ratio = 50,000 / 1,00,000 × 100
= 50%
Current Ratio = Current Assets / Current Liabilities
Current Ratio = Inventory + Cash and Cash Equivalents + Trade Receivables / Current Liabilities
Current Ratio = 15,000 + 17,500 + 27,500 / 40,000
= 1.5: 1
Liquid Ratio = Liquid Assets / Current Liabilities
Liquid Ratio = Cash and Cash Equivalents + Trade Receivables / Current Liabilities
Liquid Ratio = 17,500 + 27,500 / 40,000
= 1.125: 1
Inventory Turnover Ratio = Cost of Goods Sold / Average Stock
Inventory Turnover Ratio = Revenue from Operations − Gross Profit / Average Stock Inventory
Turnover Ratio = 1,00,000 − 50,000 / 15,000
= 3.33 times