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Ratio is an expression of one number in relation to another. It is one of the method of analysing financial statement. A ratio is found by dividing one figure by another.

Ratio is an expression of one number in relation to another. It is one of the method of analysing financial statement. A ratio is found by dividing one figure by another.

1. Quotient obtained by dividing one value by the otherPresented 40 students out of 60 students. The

ratio is 40/60=2/3= 0.67 Times

1. Quotient obtained by dividing one value by the otherPresented 40 students out of 60 students. The

ratio is 40/60=2/3= 0.67 Times

15/04/23 2SASI INSTITUTE OF TECHNOLOGY & ENGINEERING

2. Quotient obtained by multiplied by hundredPresented 40 students out of 60 students. The

ratio is 40/60*100 =2/3= 66.67% Times

2. Quotient obtained by multiplied by hundredPresented 40 students out of 60 students. The

ratio is 40/60*100 =2/3= 66.67% Times

3.Ratio is also expressed as a proportion.Presented 40 students out of 60 students. The

ratio is 40:60 =4:6 =2:3

3.Ratio is also expressed as a proportion.Presented 40 students out of 60 students. The

ratio is 40:60 =4:6 =2:3

Current Assets: Cash+ Bank + Debtors + Bills Payable + Inventory + Prepaid Expenses + Accrued Income + Loan & Advance

Current Liabilities: Sundry Creditors + Bills Payables + Outstanding Expenses + Provision for Bad DebtsQuick Assets: Current Assets – Stock & Prepaid Expenses

Absolute Quick Assets: Cash + Bank

Debt: Loan From Bank + Financial Institutions+ Public DepositEquity: Equity Capital + Preference Capital +

Reserves

Capital Employed= Owners funds + Long Term Debt

Note: These are called Activity Ratios or Efficiency Ratios

Net Working Capital = Current Assets – Current Liabilities

Note: These are called Activity Ratios or Efficiency Ratios

Cost of Goods Sold = Sales-Gross ProfitAverage Inventory = (Opening Stock + Closing

Stock)/2

15/04/23 9SASI INSTITUTE OF TECHNOLOGY & ENGINEERING