Question

Read the following information to answer the below questions: Net Sales = 40,00,000 (20 % GP Element) out of which 40% is on credit. Opening Inventories were 60 % of closing inventories. Opening Receivables are 120,000. Calculate Capital Gearing Ratio of the company?

A 0.61
B 1.02
C 1.20
D 0.97
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