This document contains sample ratio analysis questions and solutions for accounting students. It includes 8 questions with financial information for various companies (Sumit Ltd, Rahul Ltd, Ashish Ltd, Star Hotels, Aditi Ltd, Asish Ltd) and asks the student to calculate various financial ratios for each, such as current ratio, quick ratio, inventory turnover, gross profit ratio, and others. The document is intended to help accounting students learn how to calculate common financial ratios used in ratio analysis.

1. I.H.M Dehradun
ACCOUNTANCY
Notes by -:
G.K Sawhney
7895190950
TOPIC - RATIO ANALYSIS
Ques1) Following information is available in respect of Sumit ltd.
Debtor 120000
Gross sales 820000
Sale return 20000
Gross Profit 200000
Net profit 120000
Operating Expense 60000
Interest 10000
Tax 10000
Current Asset 320000
Current Liability 160000
Fixed assets 400000
Debenture 200000
Opening stock 80000
Closing stock 120000
Compute all possible ratios.
Ques2) Following information is available from the books of Rahul ltd.
Return Inward 50000
Cash sales 70000
Gross profit 265000
Net profit 135000
Fixed assets 380000
Current assets 275000
Current liabilities 115000
Opening Stock 65000
Closing Stock 95000
Opening Expense 85000

2. Interest 20000
Dividend 15000
Tax 10000
Sundry Debtor 110000
Bill receivable 10000
Debenture 140000
Compute the following ratios:
1) Current ratio
2) Quick ratio
3) Interest coverage ratio
4) Opening ratio
5) Inventory turnover ratio
6) Debt equity ratio
7) Average collection period
8) Return on total investment
9) Proprietary ratio
Ques3) Following information is available from the books of Ashish ltd.
Fixed asset 450000
Gross sales 1080000
Sale return 40000
Cash sales 40000
Gross profit 210000
Net profit 105000
Operating expense 68000
Interest 22000
Tax 10000
Dividend 5000
Current Assets 340000
Current liability 160000
Sundry Debtor 120000
Opening stock 110000
Closing Stock 150000
Debenture 140000
Compute the following ratios:
1) Current ratio
2) Quick ratio
3) Inventory turnover ratio
4) Gross profit ratio
5) Net profit ratio
6) Operating ratio
7) Fixed assets turnover ratio
8) Interest coverage ratio
9) Return on total investment
10) Return on equity

3. 11) Fixed assets to net worth
12) Debt equity ratio
13) Average collection period
14) Debtor Turnover ratio
Ques 4) Following information is available from the books of Star hotels;
Gross sales 880000
Sales return 80000
Cash sales 70000
Net profit 120000
Interest 40000
Tax 30000
Dividend 10000
Gross profit 250000
Operating expense 50000
Sundry debtor 85000
Bill receivable 15000
Stock in hand 145000
Compute the following ratio:
1) Gross profit ratio
2) Net profit ratio
3) Interest coverage ratio
4) Operating ratio
5) Average collection period
6) Stock turnover ratio
Ques7) Following information is available from the books of Aditi ltd.
Gross Sales 720000
Sale Return 20000
Cash Sales 60000
Opening Stock 65000
Closing Stock 85000
Sundry debtor 75000
Bill receivable 5000
Gross Profit 210000
Net profit 140000
Opening expense 40000
Interest on debenture 20000
Debenture 200000
Fixed Assets 360000
Current Assets 280000
Current liability 140000
Compute-:

4. 1) Current Ratio
2) Quick Ratio
3) Debt equity ratio
4) Average collection period
5) Gross profit ratio
6) Net profit ratio
7) Operating ratio
8) Inventory Turnover ratio
9) Return on equity
10) Return on total asset
11) Fixed asset turnover ratio
12) Turnover ratio
13) Return on total capital
Ques8) Following information is available in the books of Asish ltd.
Gross Sale 750000
Sale Return 20000
Cash Sales 60000
Gross profit 190000
Net profit 130000
Opening Stock 86000
Closing stock 114000
Sundry debtor 70000
Debenture 140000
Current Asset 230000
Current liability 105000
Fixed Asset 285000
Calculate:
1) Current ratio
2) Quick ratio
3) Gross profit ratio
4) Net profit ratio
5) Debtor turnover ratio
6) Average collection period
7) Debt equity ratio
8) Operating ratio
9) Fixed asset turnover ratio
10) Current Asset turnover ratio