Home
Class 12
ACCOUNTS
Calculate Return on investment and Debt ...

Calculate Return on investment and Debt to equity ratio from the following information:
Net profit after interest and tax , Rs 300000
10% Debentures , Rs 500000
tax rate, 40%
capital Employed , Rs 4000000

Text Solution

Verified by Experts

(i) Return on investment=`("Net profit before interest and tx")/("Capital employed")xx100`
`=(Rs 550000("note"))/(Rs 400000)xx100=13.75%`
Promotional Banner

Topper's Solved these Questions

  • ACCOUNTING RATIOS

    TS GREWAL|Exercise Evaluation Questions|13 Videos

  • ACCOUNTING RATIOS

    TS GREWAL|Exercise Exercise|147 Videos

  • ACCOUNTING FOR PARTNERSHIP FIRMS-FUNDAMENTALS

    TS GREWAL|Exercise EVALUATION QUESTION :QUESTIONSWITHMISSINGVALUES|3 Videos

  • Admission of a Partner

    TS GREWAL|Exercise EXERCISE|107 Videos

Similar Questions

Explore conceptually related problems

With the help opf the following information calculate return on investment: Net profit after interest and tax Rs 600000, 105 Debentures Rs 1000000, Tax @ 40% ,capital Employed Rs 8000000

Calculate the profits before in terest and tax from the following information Profit after tax= ₹ 1,50,000. Interest.

From the following details calculate Interest Coverage Ratio: Net profit after tax - ₹ 7,00,000 6% debentures of ₹ 20,00,000 Tax Rate 30%

Net profit before interest and tax rs 250000, capital exployed Rs 100000. calculate return on investment

From the following details, calculate interest coverage ratio : Net Profit after tax Rs. 60,000, 50% Long Tax debt 10,00,000, and Tax rate 40%

Calculate return on investment (ROI) form the followng details : net profit after tax Rs 650000, rate income tax 50% ,10% debentrues of rs 100each Rs 100000, fixed assets at cost rs 2250000.,accumulatd depreciation on fixed assets up to date Rs 250000, current assets Rs 1200000, current liabilites Rs400000.

From the following information related to naveen ltd, calculate (a) return on investment and (b) total assets to debt ratio: Information: fixed assets Rs 7500000, current assets Rs 400000, current liabilites Rs 2700000, 12% debentures Rs 800000 and net profit before interest tax and dividend Rs 1450000.

TS GREWAL-ACCOUNTING RATIOS -Exercise
  1. Calculate Return on investment and Debt to equity ratio from the follo...

    Text Solution

    |

  2. From the following compute curent ratio:

    Text Solution

    |

  3. calculate current ratio from the following information:

    Text Solution

    |

  4. Current ratio is 2.5 working capital is Rs 150000. calculate the amoun...

    Text Solution

    |

  5. Working capital is Rs 900000, Trade payables Rs 90000, and other curre...

    Text Solution

    |

  6. Working capital Rs 180000, total debts Rs 390000, long term debts Rs 3...

    Text Solution

    |

  7. Current assets are Rs 750000 and working capital is Rs 250000. calcula...

    Text Solution

    |

  8. Trade payables rs 50000 working capital Rs 900000, current liabilities...

    Text Solution

    |

  9. A company had current assets of Rs 450000 and current liabilites of Rs...

    Text Solution

    |

  10. Current liabilites of a company were Rs 175000 and its current ratio w...

    Text Solution

    |

  11. Ratio of current assets (Rs 300000) to current liabilities (Rs 200000)...

    Text Solution

    |

  12. Ratio of currents assets (Rs 275000) to curent liabilites (Rs 350000) ...

    Text Solution

    |

  13. A firm had curent assets of Rs 500000.It paid current liabilities of R...

    Text Solution

    |

  14. state giving reason whether the current ratio will improve or decline ...

    Text Solution

    |

  15. state giving reasons which of the following transactions would improve...

    Text Solution

    |

  16. From the following information calcualte liquid ratio:

    Text Solution

    |

  17. Quick assets Rs 150000, inventroy (stock) Rs 40000, prepaid Expaneses ...

    Text Solution

    |

  18. Current assets Rs 300000, inventories Rs 600000, working capital Rs 25...

    Text Solution

    |

  19. Woking capital Rs 360000, total debts Rs 780000, long term debts s 600...

    Text Solution

    |

  20. Current liablities of a company are Rs 600000. Its current ratio is 3:...

    Text Solution

    |

  21. X ltd has a current ratio fo 3.5 :1 and quick ratio of 2:1 if the inve...

    Text Solution

    |