From following information calculate following ratios:

i) Gross profit Ratio        ii) Working capital turnover ratio           iii) Proprietary ratio               iv) Debt Equity ratio
 

Particulars

Share Capital                                                                             Rs. 8,00,000 Current assets                                                                            Rs. 5,00,000 Credit revenue from operations                                                Rs. 3,00,000 Cash revenue from operations          75% of Credit revenue from operations 9% long term borrowings                                                         Rs. 3,40,000 Current Liabilities                                                                    Rs. 2,90,000 Cost of revenue from operations                                           Rs.6,80,000

1) Gross Profit Ratio = Gross Profit/Revenue from operations X 100
Revenue from Operations = Cash Revenue from Operations + Credit Revenue from Operations
= (75/100 X 3,00,000) + 3,00,000 = 2,25,000 + 3,00,000 = 5,25,000
Gross Profit = Revenue from Operations - Cost of Revenue from Operations 
= 5,25,000 - 6,80,000 = 1,55,000 ( Gross Loss )
Gross (loss) Ratio = 1,55,000/5,25,000 X 100 = 29.5%

2) Working Capital Turnover Ratio = Revenue from Operations/Working Capital
Working Capital = Current Assets - Current Liabilities
= 5,00,000 - 2,90,000 = 2,10,000
Working Capital Turnover Ratio = 5,25,000/2,10,000 = 2.5 times
 
3) Proprietary Ratio = Proprietor's Funds/Total Assets
Proprietor's Funds = Share Capital = 8,00,000
Total Assets = Total Equities and Liabilities 
= (Share Capital + Current Liabilities + Non-Current Liabilities)
= 8,00,000 + 2,90,000 + 3,40,000
= 14,30,000
Proprietary Ratio = 5.59:1

d) Debt-Equity Ratio = Long-Term Debt/Proprietor's Funds
Long-Term Debt = 3,40,000
Debt-Equity Ratio = 3,40,000/8,00,000 = 0.425:1