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The short story ‘ The Good Samaritan’ is a Parable narrated by Jesus Christ to his disciples. Long-time ago a man was walking from Jerusalem to Jericho, suddenly, he was attacked by two robbers, who beat him up and stole everything he had and also the clothes on his back.

The man lay bleeding beside the road. A Priest come along and saw the bleeding man. Instead of helping the bleeding man the priest backed away quickly and went on his way. Then another man came along and saw the man lying in the dirt, covered with blood. The man hesitated to touch him because of his terrible state and went away.

Eventually, a Samaritan comes down the road. He came over to the man and gently cleaned the man with water and also gave him some water to drink. He cleaned the wounds with a little wine to make them heal quickly. He put the man on his donkey and brought him back to town. Although the wounded man was a Jew, the Samaritan helped and saved him. Jews and Samaritans had been enemies for hundreds of years.

The Samaritan gave some money to an innkeeper and asked him to give a clean bed and to take good care of the man until he was strong again. After narrating this parable Jesus Christ asked his disciples which of the three men was true neighbour to the man who was robbed.

An expert at Jewish law quickly said that a the true neighbour of the robbed man was the one who helped him. Jesus then asked them to go out and do just the same i.e, to help their fellow human beings.

Thus Jesus Christ’s disciples understood that he wanted them to love and help everybody, especially strangers who needed help.

Jesus taught his followers to love everybody especially strangers and those who are in need of help.

The man suffered serious injuries is True.

The dog was very much surprised to see the wolf running into the deep forest hastily seeing a bear.

Seeing that the bear was stronger than the wolf, the dog decided to take up service with the bear.

The bear said to the dog that the lion was the strongest beast on earth. He was the king of the forest.

“ Why not” the wolf said, and that meant he agreed to be the dog’s master.

The dog was tired of wandering about by himself looking for food and being frightened of those who were stronger than him. He was sick and not happy with the way he was living.

The first traveler gave the robbers a good fight is Not True.

The degree of hotness or coldness of an object as compared to other objects is called temperature.

The lesson ‘Dog finds his Master’ is story about how dogs wilfiily become the servants of Man i.e., How dogs become domesticated. It is ironical that ‘Dog’ which were once a free animal in the wild, wilfiily became domesticated by accepting human beings as their master.

Long, Long ago, Dogs like foxes lived in packs but hunted alone. They lived in freedom until a dog was bom who was not pleased with this way of life. The dog was tired of wandering in search of food and being frightened of other stronger animals. So he decided to become the servant of the strongest person on this earth.

He started searching for such a master. He met a wolf and asked it if he would become the dog’s master. The wolf readily agreed and as they were walking along the forest path, the wolf darted quicky off the path and hid among the bushes deep inside the forest.

The surprised dog asked the wolf why, he was frightened. The wolf told the dog that a ‘bear’ was out there and he might eat up both of them. The dog, then realized that the bear was stronger than the wolf and decided to become the bear’s servant. The bear asked the dog to join with him to hunt cows so that both of them could eat to their fill. As they approached the cows, a terrible noise stopped them.

The bear ran away and hid in the forest. The bear said to the dog that the terrible noise was made by a ‘lion’ who was the mler of the forest and that the lion was the strongest being on the earth. Later the dog became the Lion’s servant. He was happy in the Lion’s service because no one dared to touch him or offend him. One day. the Lion and the dog were walking in the forest.

The Lion stopped suddenly and rared and struck the ground in anger with his paw. Then he walked away very quietly. The dog asked the lion if anything was wrong. The lion told the dog that he could smell a ‘Man’ coming towards them and they better run away and hide from him.

So the dog bid goodbye to the Lion because he wanted to serve a master who was the strongest being on the earth. Eventually, the dog went to the ‘Man’ and stayed with him and served him faithfully, Since then the dog has been the most loyal servant of Man and knows no other master.

1. maximum-minimum

2. equal

3. conduction

4. convection

Following are the factors considered while deciding different gauges of tracks. 

i. Initial investment 

ii. Demand for exchange of commodities 

iii. Average number of commuters per day 

iv. Flexibility, particularly in hilly regions

Rail transport has the following advantages:

i. In the absence of water bodies connecting two places, rail transport becomes the cheapest mode of transport between those places. 

ii. Rail transport is well suited for transportation of bulky goods over long distances. 

iii. Rail transport can be used by a large number of people at the same time. 

iv. Travel through rail transport is very comfortable.  

Rail transport is preferred by people because there are lesser cities and more villages. Due to this reason, travel to cities involves long distances and railways are very comfortable over long distances. India is a developing country. Most people cannot afford private vehicles due to which they prefer railways as rail transport is very cheap.

Rail transport has the following disadvantages:

i. Rail transport is not able to cater to hill regions effectively. 

ii. Since rail transport is possible only from one terminal to another, it has to be supported by a good network of roads. 

iii. The initial investment required to set up rail transport is very high. 

iv. It is very difficult to maintain railway facilities. 

Correct option is (D) Proposed Dividend

Correct option is (D) Salary expense

Correct option is (A) cash inflow of operating activity

Correct option is (A) both are cash outflows

Functional classification of ratios are as under :

1. Profitability Ratio: The earning capacity of a business unit is known as profitability. Following are the different ratios to measure profitability.

• Gross profit ratio
• Operating ratio
• Operating profit ratio
• Net profit ratio.

2. Liquidity Ratio: Liquidity means the ability of business unit to pay short-term liabilities or current liabilities. Following ratios are included in liquidity ratio :

• Current ratio
• Liquidity ratio.

(3) Solvency Ratio: The capacity of a business unit to pay the long-term liabilities is known as financial or economic solvency. Following ratio are included insolvency ratio :

• Debt to equity ratio
• Total assets to debt ratio
• Proprietary ratio
• Interest coverage ratio.

(4) Efficiency (Activity) Ratios: The profitability of the business increases, when all resources and equipment acquired by the business entity are used efficiently. Following ratios are included in efficiency ratio 

• Stock turnover
• Working capital turnover
• Debtor turnover
• Creditors turnover.

Correct option is (C) both are cash inflows

Correct option is (C) Three

Average stock = \(\frac{Opening\, stock + Closing stock} {2}\)

=\(\frac{2,00,000+1,50,000}{2} \)= ₹ 1,75,000

Cost of goods sold = Opening stock + Purchase + Purchase expense + Wages – Closing stock

= ₹ 2,00,000 + ₹ 22,00,000 + ₹ 1,00,000 + ₹ 2,50,000 – ₹ 1,50,000 = ₹ 26,00,000

Stock turnover ratio =  \(\frac{Cost\, of\, goods\, sold}  {Average\, stock} =\frac{26,00,000}{1,75,000 }\)= 14.86 times

Classification of ratios can be done into two parts :

• Traditional classification
• Functional classification.

Cost of goods sold = Sales – Gross Profit (@ 30%)

= ₹ 30,00,000 – ₹ 9,00,000 = ₹ 21,00,000

Average Stock = \( \frac{Opening\, stock + Closing\, stock} {2} = \frac{3,50,000+2,50,000}{2}\) = ₹ 3,00,000

Stock Turnover =  \(\frac{Cost\, of\, goods\, sold}  {Average\, stock} =\frac{21,00,000}{3,00,000}\) = 7 times

Functional classification of ratios is as under :

• Profitability ratios
• Liquidity ratios
• Solvency ratios
• Efficiency ratios.

Shareholder’s funds is owner’s funds only which includes, equity shares capital, preference share capital reserves and surplus and deducted debit balance of P & L A/c.

Profit earning capacity of the business is known as profitability.

Profitability ratios are as under:

1. Gross profit ratio
2. Operating ratio
3. Operating profit ratio
4. Net profit ratio.

• Explanation of Gross profit ratio: Gross profit ratio shows the relationship between gross profit and total net sales. Gross profit ratio is an income-based ratio. Gross profit ratio indicates percentage of gross profit to sales. Sales means revenue from operation.
• Operating income means the income which is generated from the business in which company deals.
• Sales means net sales.

Formula : Gross profit ratio =  Gross profit / Net Sales ×100
Where, Gross profit = Total Sales – Cost of goods sold
Total sales = Credit sales + Cash sales
Net sales = Sales – Sales return
Cost of goods sold = Opening stock of raw material + purchase of raw material + purchase expenses + wages+ factory expenses – closing stock of raw material

Classification of profitability ratios is as under :

• Gross profit ratio
• Operating ratio
• Operating profit ratio
• Net profit ratio.

High-interest coverage ratio is more better because it shows high payment capacity of interest of the business.

Interest coverage ratio shows the relationship between profit before tax and interest on long term debts. This ratio also shows earning capacity.

Profitability ratios are shown in terms of percentage.

Gross profit means excess of sales over cost of goods sold.
In short,

Gross profit = Sales – Cost of goods sold.

Gross profit ratio discloses the relation between gross profit and sales.

Operating ratio disclose the relation between operating cost and sales.

Cost of goods sold = Cost of goods consumed + Wages

= ₹ 25,00,000 + ₹ 2,00,000 = ₹ 27,00,000

Operating Expense = Administrative expense + Sales expense + Factory expenses (including depreciation)

= ₹ 1,75,000 + ₹ 75,000 + ₹ 50,000 = ₹ 3,00,000

(i) Operating Ratio = img

= \(\frac{27,00,000+3,00,000}{39,00,000}\times100\)

= \(\frac{30,00,000}{39,00,000}\)= 76.92%

Operating cost = Cost of goods sold + Operating expenses

= ₹ 27,00,000 + ₹ 3,00,000 = ₹ 30,00,000

(ii) Operating Profit= Sales – Operating Cost

= ₹ 39,00,000 – ₹ 30,00,000 = ₹ 9,00,000

Operating Profit Ratio =  \(\frac{Operating\,profit}{Net\,sales}\times100\)

=\(\frac{9,00,000}{39,00,000}\times100\) = 23.8% OR

Operating Profit Ratio = 100% – Operating Ratio

= 100 – 76.92 = 23.08%

Operating cost = Cost of goods sold + Operating expenses.

The decreasing trend of operating ratio suggest the increase in profitability.

Operating profit = Sales – Operating cost.

Correct option is (C) Sales – Operating Cost

Yes, we have to consider current investment for current ratio. Because in calculation of current ratio we consider current assets and current investments are included in current assets.

Income or revenue arise from activity except business activity of an unit is know as non¬operating incomes. Non operating incomes are like interest received, dividend received, profit on sales of asset should not be considered for the determination of operating cost.

Correct option is (A) Expenses

Correct option is (C) Interest paid

Operating expenses are those expenses which are incurred for operating activities of business. – Operating expenses includes- office/administrative expenses, Sales distribution expenses, Employees benefit expenses, depreciation, amount written off etc.

No, financial expenses are not included to determine operating ratio.

Interest expense is an illustration of financial expense.

The gross profit ratio and the net profit ratios are revenue-based ratios.