| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
| Revenue from Operations (Net Sales) | 5,00,000 | Current Liabilities | 1,40,000 |
| Cost of Revenue from Operations (Cost of Goods Sold) | 3,00,000 | Paid-up Share Capital | 2,50,000 |
| Current Assets | 2,00,000 | 13% Debentures | 1,00,000 |
SOLUTION
(i) Net Sales = 5,00,000
Cost of Goods Sold = 3,00,000
Gross Profit = Net Sales − Cost of Goods Sold
= 5,00,000 − 3,00,000
= 2,00,000
Gross Profit Ratio = Gross profit × 100 / Net Sales
= 2,00,000×100 / 5,00,000
= 40%
(ii) Current Assets = 2,00,000
Current Liabilities = 1,40,000
Working Capital = Current Assets − Current Liabilities
= 2,00,000 − 1,40,000
= 60,000
Working Capital turnover ratio = Net Sales / Working Capital
= 5,00,000 / 60,000
= 8.33 Times
(iii) Long-term Debts = 13%
Debentures = 1,00,000
Equity = Paid-up Share Capital = 2,50,000
Debt-Equity Ratio = Long-term Debts / Equity
= 1,00,000 / 2,50,000
= 0.4:1
(iv) Total Assets = Total Liabilities
Total Liabilities = Current Liabilities + Paid-up Share Capital + 13% Debentures
= 1,40,000 + 2,50,000 + 1,00,000
= 4,90,000
Proprietary Ratio = Shareholders’ Fund / Total Assets
= 2,50,000 / 4,90,000
= 0.51: 1