ABC Ltd. firm has a sales of Rs.6 crores, Variable cost Rs.
3.5 crores and Fixed cost of Rs. 0.65 crores.
The firm has debt and equity resources worth of Rs.7 crores
and 10 crores respectively. With the
data given show :
(i) The firm’s ROI.
(ii) EBIT if sales decline to Rs.4 crores.
(iii) If the industry’s assets turnover is 4 times, does the
firm has high or low asset turnover? The
cost of debt is 12%. Ignore taxation.
Answer / chirag patodi
Sales 6.0
Less: Variable Cost 3.5
Contribution 2.5
Less: Fixed Cost 0.65
EBIT 1.85
Less: Interest 0.70
EBT 1.15
Total Investment = Debt + Capital = 7 + 10 = 17 crores
(i) Return on Investment (ROI) =
1.85/17= 10.88%
Is This Answer Correct ? | 10 Yes | 0 No |
GAP Stand for
11 Answers Genpact, Infosys, Northern Trust,
what's accounts payable
5 Answers BPO, Genpact, Global Info Vision, ITI,
What is the Voucher entry (In Tally) if the Office Expenses of Company A is being made by Company B on behalf of Company A?
ACCOUNTING STANDARDS ISSUED BY INSTITUE OF CHARTERED ACCOUNTANCY INDIA FOR PREPARING FUND FLOW STATEMENT
can i get exact salary of clerk in SBI. and i want to know about promotion details .....
EXPAND_________VHF
i given 20000 amount to some one in a company but the travelling expendeture only 8000 the person who had taken the 20000 given all his expendeture for 8000 how to make an entry in the books of tally. please advice
Government sales tax refund a y 2013-2014 ? How can enter in tally
Hi, I am preparing for Junior Accounts Officers test- APTRANSCO. Can any one suggest the model paper / Books available? Many Thanks in Advance Lakshmi
What is Goods Receipt Note? and its current format
12 Answers DelCor, Mayuka Labs, Price Waterhouse Coopers,
which Electrical items is Exciseible
Expand ------APIIC