From the following information calculate:
(i) operating Ratio, (ii) Quick ratio and (iii) Woking capital turnover ratio.
Information: Equity share capital Rs 100000, 12% Preference share capital Rs 800000, 12% debentures Rs 60000, General Reserve Rs 40000 Revenue form operations Rs 300000, Opening Inventory Rs 10000, Purchases Rs 120000, Wages Rs 30000, Closing OInventory Rs 30000, Selling and Distribution Expenses Rs 10000, Quick Assets Rs 200000 and Current Liabilities Rs 120000

Explanation

(i) operating ratio
=`("Cost of revenue from operations (cost of goods sold)+operating expenses")/("Revenue from opertions(net sales)")xx100`
`=(Rs 130000+R 10000)/(Rs 300000)xx100`
`=(Rs 140000)/(R 300000)xx100=46.67%`
cost of revenue form operations (cost of goods sold)
=opening inventroy+ purchases +wages-closing inventory
=Rs 10000+Rs120000+Rs 30000-Rs 30000-Rs 130000
operating expenses =selling and distribution expenses=Rs 10000