NCERT Solutions for Class 12 Accountancy Accountancy Part II Chapter 5: Accounting Ratios

Chapter at a glance

Shareholders’ funds = share capital + reserves and surplus + money received against share warrants + share application money pending allotment. Cost of revenue = opening inventory + purchases + direct expenses – closing inventory.

Questions for Practice – Short Answer Questions

Question SA – Q1

What do you mean by Ratio Analysis?

Answer

Ratio analysis is a technique of financial analysis in which accounting ratios – arithmetical relationships between two related items of the financial statements, expressed as pure ratio, times, or percentage – are computed and interpreted, to judge the liquidity, solvency, efficiency (activity) and profitability of a business.

Ratio analysis is computing and interpreting relationships between related accounting figures to judge liquidity, solvency, activity and profitability.

Question SA – Q2

What are various types of ratios?

Answer

1. Liquidity ratios – current ratio, quick (liquid) ratio.
2. Solvency ratios – debt–equity, debt to capital employed, proprietary, total assets to debt, interest coverage.
3. Activity (turnover) ratios – inventory turnover, trade receivables turnover, trade payables turnover, working capital turnover, fixed asset turnover, net assets turnover.
4. Profitability ratios – gross profit, operating, operating profit, net profit ratio, return on investment, return on net worth, EPS, book value per share, dividend payout, P/E ratio.

Liquidity, solvency, activity (turnover) and profitability ratios.

Question SA – Q3

What relationships will be established to study: a. Inventory turnover b. Trade receivables turnover c. Trade payables turnover d. Working capital turnover

Answer

Inventory: cost of revenue to average inventory; receivables: credit revenue to average receivables; payables: credit purchases to average payables; working capital: revenue to working capital.

Question SA – Q4

The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they become due. What are the ratios used for this purpose?

Answer

Strictly, liquidity refers to the ability to meet short-term obligations; it is measured by the current ratio and the quick (liquid) ratio.

The ability to meet long-term obligations is solvency, measured by: debt–equity ratio, debt to capital employed ratio, proprietary ratio, total assets to debt ratio and interest coverage ratio.

Short-term liquidity: current and quick ratios; long-term obligations (solvency): debt–equity, debt to capital employed, proprietary, total assets to debt and interest coverage ratios.

Question SA – Q5

The average age of inventory is viewed as the average length of time inventory is held by the firm. Explain with reasons.

Answer

Average age of inventory = 365 (or 12 months) ÷ Inventory turnover ratio.

The inventory turnover ratio tells how many times the average inventory is sold (converted into revenue) in a year. Dividing the days in a year by it gives the average number of days goods remain in stock before being sold – i.e. the average time inventory is held. E.g. if inventory turnover is 6 times, average age = 365/6 ≈ 61 days. A lower age (higher turnover) shows efficient inventory management and less risk of obsolescence; a higher age indicates slow-moving or excess stock.

Average age of inventory = 365 ÷ inventory turnover, i.e. the average number of days goods stay in stock before sale; lower is better.

Questions for Practice – Long Answer Questions

Question LA – Q1

What are liquidity ratios? Discuss the importance of current and liquid ratio.

Answer

Liquidity ratios measure the ability of a business to meet its short-term obligations (current liabilities) as they fall due.

1. Current ratio = Current assets ÷ Current liabilities.

• It shows how many rupees of current assets are available per rupee of current liabilities. The ideal is 2 : 1 – current assets can fall to half and creditors will still be paid.
• Too low a ratio means difficulty in paying debts; too high a ratio means idle funds (excess inventory, receivables or cash), which lowers profitability.

2. Liquid (quick/acid-test) ratio = Quick assets ÷ Current liabilities, where quick assets = current assets – inventories – prepaid expenses.

• It is a stricter test, because inventory may take time to sell and prepaid expenses cannot be converted into cash. The ideal is 1 : 1.
• It shows the ability to pay current liabilities immediately.

Together, the two ratios give a fuller picture: a high current ratio with a low quick ratio shows heavy inventory.

Liquidity ratios measure the ability to pay short-term debts: current ratio (ideal 2 : 1) gives overall short-term solvency; liquid ratio (ideal 1 : 1) excludes inventory and prepaid expenses to test immediate paying capacity.

Question LA – Q2

How would you study the Solvency position of the firm?

Answer

Solvency is the ability of a business to meet its long-term obligations (repayment of loans and payment of interest). It is studied through:

1. Debt–equity ratio = Long-term debts ÷ Shareholders’ funds. A lower ratio (safe up to 2 : 1) means more security for lenders.
2. Debt to capital employed ratio = Long-term debts ÷ Capital employed (or total debts ÷ total assets). It shows the share of long-term funds provided by debt.
3. Proprietary ratio = Shareholders’ funds ÷ Capital employed (or total assets). A higher ratio means owners finance more of the assets – a sign of safety.
4. Total assets to debt ratio = Total assets ÷ Long-term debts. A higher ratio means debts are well covered by assets.
5. Interest coverage ratio = Net profit before interest and tax ÷ Interest on long-term debts. It shows how many times interest is covered by profits; higher is safer.

Solvency is studied with the debt–equity, debt to capital employed, proprietary, total assets to debt and interest coverage ratios.

Question LA – Q3

What are various profitability ratios? How are these worked out?

Answer

Capital employed = shareholders’ funds + non-current liabilities (or non-current assets + working capital).

Gross profit, operating, operating profit and net profit ratios, ROI, RONW, EPS, book value per share, dividend payout and P/E ratio, each computed by relating profit to revenue, capital or shares as shown.

Question LA – Q4

The current ratio provides a better measure of overall liquidity only when a firm’s inventory cannot easily be converted into cash. If inventory is liquid, the quick ratio is a preferred measure of overall liquidity. Explain.

Answer

The current ratio includes inventory among current assets, while the quick ratio excludes it. Which is the better measure depends on how readily the inventory can be turned into cash:

• If inventory is slow-moving, specialised or seasonal (cannot easily be converted into cash), including it would overstate liquidity. Comparing the current ratio with the quick ratio then shows how much of the apparent liquidity is locked up in inventory. The current ratio is read along with the inventory position, as an overall measure.
• If inventory is highly liquid (sold quickly, as in FMCG or retail), the quick ratio is a strict, immediate test of the ability to pay current liabilities from cash, receivables and marketable securities. It avoids distortions caused by valuation of inventory and prepaid items.

In practice both ratios are studied together: the gap between them shows the dependence on inventory for meeting short-term obligations.

The current ratio includes inventory and the quick ratio excludes it; the right measure depends on how quickly inventory can be turned into cash, and comparing the two shows how much liquidity depends on inventory.

Questions for Practice – Numerical Questions

Question Num – Q1

Following is the Balance Sheet of Raj Oil Mills Limited as at March 31, 2017. Calculate current ratio. Share capital 7,90,000; Reserves and surplus 35,000; Trade Payables 72,000; Total 8,97,000. Tangible fixed assets 7,53,000; Inventories 55,800; Trade Receivables 28,800; Cash and cash equivalents 59,400; Total 8,97,000.

Answer

Current assets = 55,800 + 28,800 + 59,400 = ₹ 1,44,000; current liabilities = ₹ 72,000. Current ratio = 1,44,000 ÷ 72,000 = 2 : 1.

Current ratio = 2 : 1.

Question Num – Q2

Following is the Balance Sheet of Title Machine Ltd. as at March 31, 2017: Share capital 24,00,000; Reserves and surplus 6,00,000; Long-term borrowings 9,00,000; Short-term borrowings 6,00,000; Trade payables 23,40,000; Short-term provisions 60,000; Total 69,00,000. Tangible fixed assets 45,00,000; Inventories 12,00,000; Trade receivables 9,00,000; Cash and cash equivalents 2,28,000; Short-term loans and advances 72,000; Total 69,00,000. Calculate Current Ratio and Liquid Ratio.

Answer

Current assets = 12,00,000 + 9,00,000 + 2,28,000 + 72,000 = ₹ 24,00,000. Current liabilities = 6,00,000 + 23,40,000 + 60,000 = ₹ 30,00,000. Current ratio = 24,00,000 ÷ 30,00,000 = 0.8 : 1. Liquid assets = 24,00,000 – 12,00,000 = ₹ 12,00,000 → Liquid ratio = 12,00,000 ÷ 30,00,000 = 0.4 : 1.

Current ratio 0.8 : 1; liquid ratio 0.4 : 1.

Question Num – Q3

Current Ratio is 3.5 : 1. Working Capital is ₹ 90,000. Calculate the amount of Current Assets and Current Liabilities.

Answer

Let CL = x; CA = 3.5x. Working capital = 3.5x – x = 2.5x = 90,000 → x = ₹ 36,000. CA = 3.5 × 36,000 = ₹ 1,26,000.

Current assets ₹ 1,26,000; current liabilities ₹ 36,000.

Question Num – Q4

Shine Limited has a current ratio 4.5 : 1 and quick ratio 3 : 1; if the inventory is 36,000, calculate Current Liabilities and Current Assets.

Answer

Let CL = x; CA = 4.5x; quick assets = 3x. Inventory = 4.5x – 3x = 1.5x = 36,000 → x = ₹ 24,000. CA = 4.5 × 24,000 = ₹ 1,08,000.

Current liabilities ₹ 24,000; current assets ₹ 1,08,000.

Question Num – Q5

Current Liabilities of a company are ₹ 75,000. If current ratio is 4:1 and Liquid Ratio is 1 : 1, calculate value of Current Assets, Liquid Assets and Inventory.

Answer

CA = 4 × 75,000 = ₹ 3,00,000; Liquid assets = 1 × 75,000 = ₹ 75,000; Inventory = 3,00,000 – 75,000 = ₹ 2,25,000.

Current assets ₹ 3,00,000; liquid assets ₹ 75,000; inventory ₹ 2,25,000.

Question Num – Q6

Handa Ltd. has inventory of ₹ 20,000. Total liquid assets are ₹ 1,00,000 and quick ratio is 2 : 1. Calculate current ratio.

Answer

CL = 1,00,000 ÷ 2 = ₹ 50,000; CA = 1,00,000 + 20,000 = ₹ 1,20,000. Current ratio = 1,20,000 ÷ 50,000 = 2.4 : 1.

Current ratio = 2.4 : 1.

Question Num – Q7

Calculate debt-equity ratio from the following information: Total Assets ₹ 15,00,000; Current Liabilities ₹ 6,00,000; Total Debts ₹ 12,00,000.

Answer

Long-term debts = Total debts – Current liabilities = 12,00,000 – 6,00,000 = ₹ 6,00,000. Equity = Total assets – Total debts = 15,00,000 – 12,00,000 = ₹ 3,00,000. Debt–equity ratio = 6,00,000 ÷ 3,00,000 = 2 : 1.

Debt–equity ratio = 2 : 1.

Question Num – Q8

Calculate Current Ratio if: Inventory is ₹ 6,00,000; Liquid Assets ₹ 24,00,000; Quick Ratio 2 : 1.

Answer

CL = 24,00,000 ÷ 2 = ₹ 12,00,000; CA = 24,00,000 + 6,00,000 = ₹ 30,00,000. Current ratio = 30,00,000 ÷ 12,00,000 = 2.5 : 1.

Current ratio = 2.5 : 1.

Question Num – Q9

Compute Inventory Turnover Ratio from the following information: Revenue from Operations ₹ 2,00,000; Gross Profit ₹ 50,000; Inventory at the end ₹ 60,000; Excess of inventory at the end over inventory in the beginning ₹ 20,000.

Answer

Cost of revenue = 2,00,000 – 50,000 = ₹ 1,50,000. Opening inventory = 60,000 – 20,000 = ₹ 40,000; average = ₹ 50,000. Inventory turnover = 1,50,000 ÷ 50,000 = 3 times.

Inventory turnover ratio = 3 times.

Question Num – Q10

Calculate following ratios from the following information: (i) Current ratio (ii) Liquid ratio (iii) Operating Ratio (iv) Gross profit ratio. Current Assets ₹ 35,000; Current Liabilities ₹ 17,500; Inventory ₹ 15,000; Operating Expenses ₹ 20,000; Revenue from Operations ₹ 60,000; Cost of Revenue from operation ₹ 30,000.

Answer

1. Current ratio = 35,000 ÷ 17,500 = 2 : 1.
   2. Liquid ratio = (35,000 – 15,000) ÷ 17,500 = 1.14 : 1.
   3. Operating ratio = (30,000 + 20,000) ÷ 60,000 × 100 = 83.33 %.
   4. Gross profit ratio = (60,000 – 30,000) ÷ 60,000 × 100 = 50 %.

Current ratio 2 : 1; liquid ratio 1.14 : 1; operating ratio 83.33 %; gross profit ratio 50 %.

Question Num – Q11

From the following information calculate: (i) Gross Profit Ratio (ii) Inventory Turnover Ratio (iii) Current Ratio (iv) Liquid Ratio (v) Net Profit Ratio (vi) Working Capital Ratio: Revenue from Operations ₹ 25,20,000; Net Profit ₹ 3,60,000; Cost of Revenue from Operations ₹ 19,20,000; Long-term Debts ₹ 9,00,000; Trade Payables ₹ 2,00,000; Average Inventory ₹ 8,00,000; Liquid Assets ₹ 7,60,000; Fixed Assets ₹ 14,40,000; Current Liabilities ₹ 6,00,000; Net Profit before Interest and Tax ₹ 8,00,000.

Answer

1. GP = 25,20,000 – 19,20,000 = ₹ 6,00,000 → GP ratio = 6,00,000 ÷ 25,20,000 × 100 = 23.81 %.
   2. Inventory turnover = 19,20,000 ÷ 8,00,000 = 2.4 times.
   3. Current assets = liquid assets + inventory = 7,60,000 + 8,00,000 = ₹ 15,60,000 → Current ratio = 15,60,000 ÷ 6,00,000 = 2.6 : 1.
   4. Liquid ratio = 7,60,000 ÷ 6,00,000 = 1.27 : 1.
   5. Net profit ratio = 3,60,000 ÷ 25,20,000 × 100 = 14.29 %.
   6. Working capital = 15,60,000 – 6,00,000 = ₹ 9,60,000 → Working capital turnover = 25,20,000 ÷ 9,60,000 = 2.625 times.

GP ratio 23.81 %; inventory turnover 2.4 times; current ratio 2.6 : 1; liquid ratio 1.27 : 1; net profit ratio 14.29 %; working capital turnover 2.625 times.

Question Num – Q12

Compute Working Capital Turnover Ratio, Debt Equity Ratio and Proprietary Ratio from the following information: Paid-up Share Capital ₹ 5,00,000; Current Assets ₹ 4,00,000; Revenue from Operations ₹ 10,00,000; 13% Debentures ₹ 2,00,000; Current Liabilities ₹ 2,80,000.

Answer

• Working capital = 4,00,000 – 2,80,000 = ₹ 1,20,000 → WC turnover = 10,00,000 ÷ 1,20,000 = 8.33 times.
• Debt–equity = 2,00,000 ÷ 5,00,000 = 0.4 : 1.
• Proprietary ratio = Shareholders’ funds ÷ Capital employed = 5,00,000 ÷ (5,00,000 + 2,00,000) = 0.71 : 1. (On total assets of ₹ 9,80,000 it would be 0.51 : 1.)

Working capital turnover 8.33 times; debt–equity ratio 0.4 : 1; proprietary ratio 0.71 : 1.

Question Num – Q13

Calculate Inventory Turnover Ratio if: Inventory in the beginning is ₹ 76,250, Inventory at the end is ₹ 98,500, Sales is ₹ 5,20,000, Sales Return is ₹ 20,000, Purchases is ₹ 3,22,250.

Answer

Cost of revenue = 76,250 + 3,22,250 – 98,500 = ₹ 3,00,000. Average inventory = (76,250 + 98,500) ÷ 2 = ₹ 87,375. Inventory turnover = 3,00,000 ÷ 87,375 = 3.43 times.

Inventory turnover ratio = 3.43 times.

Question Num – Q14

Calculate Inventory Turnover Ratio from the data given below: Inventory in the beginning of the year ₹ 10,000; Inventory at the end of the year ₹ 5,000; Carriage ₹ 2,500; Revenue from Operations ₹ 50,000; Purchases ₹ 25,000.

Answer

Cost of revenue = 10,000 + 25,000 + 2,500 – 5,000 = ₹ 32,500. Average inventory = ₹ 7,500. Inventory turnover = 32,500 ÷ 7,500 = 4.33 times.

Inventory turnover ratio = 4.33 times.

Question Num – Q15

A trading firm’s average inventory is ₹ 20,000 (cost). If the inventory turnover ratio is 8 times and the firm sells goods at a gross profit of 20% on sales, ascertain the gross profit of the firm.

Answer

Cost of revenue = 8 × 20,000 = ₹ 1,60,000. GP is 20 % of sales, so cost = 80 % of sales → Sales = 1,60,000 ÷ 0.8 = ₹ 2,00,000. Gross profit = 2,00,000 – 1,60,000 = ₹ 40,000.

Gross profit = ₹ 40,000.

Question Num – Q16

You are able to collect the following information about a company for two years (2015-16 / 2016-17): Trade receivables on Apr. 01 ₹ 4,00,000 / ₹ 5,00,000; Trade receivables on Mar. 31 – / ₹ 5,60,000; Stock in trade on Mar. 31 ₹ 6,00,000 / ₹ 9,00,000; Revenue from operations ₹ 3,00,000 / ₹ 24,00,000 (gross profit is 25% on cost of revenue from operations). Calculate Inventory Turnover Ratio and Trade Receivables Turnover Ratio.

Answer

The 2015-16 revenue printed as ₹ 3,00,000 is evidently a misprint. The textbook answers correspond to ₹ 20,00,000, and that figure is used here. Trade receivables on March 31, 2016 = April 1, 2016 = ₹ 5,00,000.

(If average inventory is used for 2016-17: (6,00,000 + 9,00,000)/2 = 7,50,000 → 2.56 times.)

2015-16: inventory turnover 2.67 times, receivables turnover 4.44 times (key 4.41); 2016-17: inventory turnover 2.13 times (on closing inventory), receivables turnover 4.53 times.

Question Num – Q17

From the following Balance Sheet and other information, calculate following ratios: (i) Debt-Equity Ratio (ii) Working Capital Turnover Ratio (iii) Trade Receivables Turnover Ratio. Share capital 10,00,000; Reserves and surplus 7,00,000; Money received against share warrants 2,00,000; Long-term borrowings 12,00,000; Trade payables 5,00,000; Total 36,00,000. Tangible fixed assets 18,00,000; Inventories 4,00,000; Trade Receivables 9,00,000; Cash and cash equivalents 5,00,000; Total 36,00,000. Revenue from Operations ₹ 18,00,000.

Answer

1. Equity = 10,00,000 + 7,00,000 + 2,00,000 = ₹ 19,00,000 → Debt–equity = 12,00,000 ÷ 19,00,000 = 0.63 : 1.
   2. Working capital = (4,00,000 + 9,00,000 + 5,00,000) – 5,00,000 = ₹ 13,00,000 → WC turnover = 18,00,000 ÷ 13,00,000 = 1.38 times.
   3. Trade receivables turnover = 18,00,000 ÷ 9,00,000 = 2 times.

Debt–equity ratio 0.63 : 1; working capital turnover 1.38 times; trade receivables turnover 2 times.

Question Num – Q18

From the following information, calculate the following ratios: i) Liquid Ratio ii) Inventory turnover ratio iii) Return on investment. Inventory in the beginning 50,000; Inventory at the end 60,000; Net Profit 2,17,900; 10% Debentures 2,50,000; Revenue from operations 4,00,000; Gross Profit 1,94,000; Cash and Cash Equivalents 40,000; Money received against share warrants 20,000; Trade Receivables 1,00,000; Trade Payables 1,90,000; Other Current Liabilities 70,000; Share Capital 2,00,000; Reserves and Surplus 1,20,000 (Balance in the Statement of Profit & Loss).

Answer

1. Liquid assets = 40,000 + 1,00,000 = ₹ 1,40,000; current liabilities = 1,90,000 + 70,000 = ₹ 2,60,000 → Liquid ratio = 0.54 : 1.
   2. Cost of revenue = 4,00,000 – 1,94,000 = ₹ 2,06,000; average inventory = ₹ 55,000 → Inventory turnover = 3.75 times.
   3. Profit before interest = 2,17,900 + 25,000 (10 % on debentures) = ₹ 2,42,900.
   • Capital employed = 2,00,000 + 1,20,000 + 20,000 + 2,50,000 = ₹ 5,90,000.
   • ROI = 2,42,900 ÷ 5,90,000 × 100 = 41.17 %.

Liquid ratio 0.54 : 1; inventory turnover 3.75 times; return on investment 41.17 %.

Question Num – Q19

From the following, calculate (a) Debt-Equity Ratio (b) Total Assets to Debt Ratio (c) Proprietary Ratio. Equity Share Capital ₹ 75,000; Share application money pending allotment ₹ 25,000; General Reserve ₹ 45,000; Balance in the Statement of Profit & Loss ₹ 30,000; Debentures ₹ 75,000; Trade Payables ₹ 40,000; Outstanding Expenses ₹ 10,000.

Answer

• Shareholders’ funds = 75,000 + 25,000 + 45,000 + 30,000 = ₹ 1,75,000.
• Total assets = total of liabilities = 1,75,000 + 75,000 + 40,000 + 10,000 = ₹ 3,00,000.
  1. Debt–equity = 75,000 ÷ 1,75,000 = 0.43 : 1.
  2. Total assets to debt = 3,00,000 ÷ 75,000 = 4 : 1.
  3. Proprietary ratio (on total assets) = 1,75,000 ÷ 3,00,000 = 0.58 : 1. (On capital employed of ₹ 2,50,000 it would be 0.70 : 1.)

Debt–equity ratio 0.43 : 1; total assets to debt ratio 4 : 1; proprietary ratio 0.58 : 1.

Question Num – Q20

Cost of Revenue from Operations is ₹ 1,50,000. Operating expenses are ₹ 60,000. Revenue from Operations is ₹ 2,50,000. Calculate Operating Ratio.

Answer

Operating ratio = (1,50,000 + 60,000) ÷ 2,50,000 × 100 = 84 %.

Operating ratio = 84 %.

Question Num – Q21

Calculate the following ratios on the basis of following information: (i) Gross Profit Ratio (ii) Current Ratio (iii) Acid Test Ratio (iv) Inventory Turnover Ratio (v) Fixed Assets Turnover Ratio. Gross Profit ₹ 50,000; Revenue from Operations ₹ 1,00,000; Inventory ₹ 15,000; Trade Receivables ₹ 27,500; Cash and Cash Equivalents ₹ 17,500; Current Liabilities ₹ 40,000; Land & Building ₹ 50,000; Plant & Machinery ₹ 30,000; Furniture ₹ 20,000.

Answer

1. GP ratio = 50,000 ÷ 1,00,000 × 100 = 50 %.
   2. Current assets = 15,000 + 27,500 + 17,500 = ₹ 60,000 → Current ratio = 60,000 ÷ 40,000 = 1.5 : 1.
   3. Acid test ratio = 45,000 ÷ 40,000 = 1.125 : 1.
   4. Cost of revenue = 1,00,000 – 50,000 = ₹ 50,000 → Inventory turnover = 50,000 ÷ 15,000 = 3.33 times.
   5. Fixed assets = 50,000 + 30,000 + 20,000 = ₹ 1,00,000 → Fixed assets turnover = 1,00,000 ÷ 1,00,000 = 1 time.

GP ratio 50 %; current ratio 1.5 : 1; acid test ratio 1.125 : 1; inventory turnover 3.33 times; fixed assets turnover 1 time.

Question Num – Q22

From the following information calculate Gross Profit Ratio, Inventory Turnover Ratio and Trade Receivable Turnover Ratio. Revenue from Operations ₹ 3,00,000; Cost of Revenue from Operations ₹ 2,40,000; Inventory at the end ₹ 62,000; Gross Profit ₹ 60,000; Inventory in the beginning ₹ 58,000; Trade Receivables ₹ 32,000.

Answer

• GP ratio = 60,000 ÷ 3,00,000 × 100 = 20 %.
• Average inventory = (58,000 + 62,000) ÷ 2 = ₹ 60,000 → Inventory turnover = 2,40,000 ÷ 60,000 = 4 times.
• Trade receivables turnover = 3,00,000 ÷ 32,000 = 9.375 times.

GP ratio 20 %; inventory turnover 4 times; trade receivables turnover 9.375 times.

Topic checklist

• ☒ Meaning and types of ratios (SA 1–3)
• ☒ Liquidity ratios – current and quick (LA 1, 4; Num 1–6, 8, 10, 11, 18, 21)
• ☒ Solvency ratios – debt–equity, proprietary, total assets to debt (LA 2; Num 7, 12, 17, 19)
• ☒ Activity ratios – inventory, receivables, working capital, fixed assets turnover (SA 5; Num 9, 11–17, 21, 22)
• ☒ Profitability ratios – GP, operating, net profit, ROI (LA 3; Num 10, 11, 15, 18, 20–22)

Total questions answered: 31 of 31