Financial management Notes in Hindi CS Executive - CSHindinotes

CS EXECUTIVE FINANCIAL MANAGEMENT
(i) Current Ratio (Working Capital Ratio) =
Standard = 2 : 1
Current Assets Current Liability
Cash Balance xx Creditors xx
Debtors xx Bills Payable xx
Bills Receivable xx Bank Overdraft xx
Advances xx Proposed Dividend xx
Bank Balance xx Provision for Tax xx
Short Term Investment xx Prov. For Doubtful Debt xx
Stock xx Outstanding Exp. xx
Prepaid Exp. xx __
xx xx
Note: ‐ Short Term Investment is known as Marketable Security.
(ii) Quick Ratio/ Acid Test Ratio/ Liquid Ratio =
Standard = 1 : 1
Quick Assets = Current Assets ‐ (Stock & Prepaid Exp.)
(iii) Absolute Quick Ratio =
2. Profitability Ratio: ‐
(i) Gross Profit Ratio = 100
Standard = 5 : 1
Gross Profit = Sales ‐ Cost of Goods Sold
Sales =
(ii) Operating Profit Ratio = 100
Operating Profit = Gross Profit ‐ Operating Expenses
(iii) Net Profit Ratio = 100
COMPILED BY MS. SHWETA AGARWAL CA, CS Page 4