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Rs. 2.5, , 51., , From the, , [QB (P) 128 (Q) 6, , following details, calculate., , 1. Investment (Net, Assets) Turnover Ratio, 2. Fixed Assets Turnover Ratio, , 3. Working Capital Turnover Ratioo, 4. Return On Investment, 5. Return On shareholders' fund, 6., , Earnings Per Share, , (RONW), Particulars, , Rs., , Equity Share Capital@T10 per share 4,00,000, 12% Preference Share, , Capital, , Fixed Assets, , 1,00,000, 1,84,000, 4,00,000, 1,00,000, 9,50,000, , Current Assets, , 2,34,000, , General Reserves, 10% Debentures, , Current Liabilities, , Net Profit after tax was Rs. 1,50,000. Revenue from operation for the year was Rs. 30,00,000 and tax, , amounted to Rs. 50,000., , Ans: (1) Investment (Net assets) Turn over ratio, , Kevenue irom operations, , Capital employed, Capital employed, Share holders funds, , shareholders funds +long term debt, =Equity share capital + preference share capital +, 4,00,000 +1,00,000+ 1,84,000, , General, , reserves, , 6,84,000, , Long term debt, , = 10% debentures, , Rs. 4,00,00, , Capital employed, , = 6,84,000+4,00,000, , 10,84,000, , Investment turn over ratio, , Student's illuminator, , 30,00,000, , 10,84,000, , 2.77 times, II PU Accountancy

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486, , 30,00,000, , 3.16 times, , -, , 9,50,000, , Net, , 3) Working capital turnover ratio, , Working capital, , AcCOuntancy Halics,, , Net revenue from, operations, Net fixed assets, , (2) Fixed assets turn over ratio, , revenue from, , operations, Working capital, , current assets, , =, , current, , Liabilities, , 2,34,000-1,00,000, 1,34,000, Working capital turnover ratio, , 30,00,000-22.39, times, 1,34,000, , 4) Return on investment (or capital employed)=, , Profit beforeinterset and tax, Capital employed, , Profit before interest and tax, , 100, , profit after tax + interest on debentures+ tax, , Interest on debentures (@10% on Rs. 4,00,000 debentures) =, , 10, , x4,00,000=40,000, , I00, = 1,50,000+40,000+ 50,000, , 2,40,000, , Capital employed, Return on investment, , (5) Return on shareholders fund (RONW), Shareholders fund, Return on shareholders fund, , = 10,84,000 (Taken from point no. 1), , 2,40,000 x100, 10,84,000, , 22.14%, , Profit after taxx100, Shareholders' funds, = Rs. 6,84,000 (See calculation in point (1)], , 1,50,000100 =21.93%., , 6,84,000, , Profit available for equity shareholders, , (6) Earnings per share, Profit available for equity share holders, , Number of equity shares, Net profit after tax - Preference dividend., , Preference dividend (@12% of preference capital of Rs. 1,00,000) = x1,00, 000 = Rs. 12,000, i) Profit available for equity shareholders, (i) Number of equity shares, , Earnings per share, , 1,50,000-12,000 =1,38,000, , 4,00,000=40,000, 10, =38,000, =, , 40,000, , Rs. 3.45., , I P U, Accountancy, , Student's illuminator