1.

(a) From the following calculate 'Trade Receivables Turnover Ratio'. Total Revenue from operation for year Rs 8,40,000. Cash Revenue from operation-40% of credit revenue from operation. Closing Trade Receivable over Opening Trade Receivable by Rs 80,000. Opening Trade Receivables in 20% of credit Revenue from operation. (b) From the following, calculate Interest Coverage Ratio. Profit after Interest and Tax Rs 4,97,000. Rate of Income Tax 30%. 12% Debentures Rs 6,00,000.

Answer»

(a) From the following calculate 'Trade Receivables Turnover Ratio'.

Total Revenue from operation for year Rs 8,40,000.

Cash Revenue from operation-40% of credit revenue from operation.

Closing Trade Receivable over Opening Trade Receivable by Rs 80,000. Opening Trade Receivables in 20% of credit Revenue from operation.

(b) From the following, calculate Interest Coverage Ratio.

Profit after Interest and Tax Rs 4,97,000.

Rate of Income Tax 30%.

12% Debentures Rs 6,00,000.



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