Interested to Buy Any Domain ? << Click Here >> for more details...
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.
- 1 Answers
- 3838 Views
- I also Faced
- E-Mail Answers
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 |
Please share different type of Z report
A furniture dealer purchased 10 units of sofa sets each costs 2500 out of which one is for shop purpose.Pass necessary entry
Expand---------ECBD
How can entry made if loan transfer from reliance to tata finance
What is smallest 4 digit number?
How Many Type's of Cheques? with explanation and Examples?
Expand NEFT
What is the greatest difficulty in implementing FCA?
The primary record of a credit purchase of a fixed asset is made in---------
EXPAND___________MMTS
Explain why the assets of a partnership are usually revalued before the admission of a new partner or the retirement of an existing partner
how we can show cash deposited in sbi? in tally (i.e.at the place of Account what we have to post) (at the place of particulars what we have to post)
Audit 
