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