1. Determine which company is more profitable:
|
A Ltd. |
B Ltd. |
Net Profit Ratio |
3% |
4% |
Sales/Capital Employed |
5 times |
3 times |
2. From the following information, calculate, debtors turnover ratio and average collection period.
|
Rs. |
Total debtors (opening balance) |
2,00,000 |
Cash sales |
1,50,000 |
Credit sales |
10,00,000 |
Cash collected |
7,80,000 |
Sales returns |
60,000 |
Bad debts |
40,000 |
Discount allowed |
20,000 |
Provision for bad debts |
25,000 |
No. of days in a year 360 |
|