What is the formula for finding the ratio called "RETURN ON TOTAL RESOURCES"
this is my question.. reply to my email if possible the formula for RETURN ON TOTAL RESOURCES.. WHAT I NO IS THAT IT IS SOMETHING DIVIDED BY TOTAL ASSETS X 100.. IF I AM NOT RIGHT CAN SOME HELP ME PLEASE VERY SOON
The following are the summarized profit and loss account of V Ltd for the year ending 31st December, 2005, the balance sheet as on that date. You are required to compute liquidity, Long-term solvency, turnover ratios, and profitability ratios both in relating to capital and sales.
PROFIT AND LOSS ACCOUNT
To Opening Stock 99,500 By Sales 8,50,000
To Purchases 5,45,250 By Closing Stock 1,49,000
To Incidental expenses 14,250
To Gross Profit 3,40,000
9,99,000 9,99,000To
Operating expenses:
Selling and distribution 30,000 By Gross Profit 3,40,000
Administrative expenses 1,50,000 By Non-Operating income interest 3,000
Finance 15,000 By profit on sale of shares 6,000
To Non-operating expenses:
Loss on sales of assets 4,000
To net Profit 1,50,000
3,49,000 3,49,000
BALANCE SHEET
Rs. Rs.
Issued capital:
200 equity shares of
Rs. 100 each 2,00,000 Land &buildings 1,50,000
Reserves 90,000 Plant & Machinery 80,000
Current liabilities 1,30,000 Stock-in-Trade 1,49,000
Profit and loss account 60,000 Sundry Debtors 71,000
Cash and bank balance 30,000
4,80,000 4,80,000
From the above statement you are required to calculate the following ratios :
Return on total resources
