Question
Varun spent 28% of his salary on bills, 45% of the
remaining amount on groceries, and saved the rest. If his savings are Rs. 1260, then find the amount he spent on groceries.Solution
ATQ,
Let, salary of Varun be Rs. 100x
According to question;
0.72 × 0.55 × 100x = 1260
Or, x = 31.5
So, amount spent on groceries = 0.72 × 0.45 × 3150 = Rs. 1020
Sales = ₹200 lakhs, Variable cost = ₹120 lakhs, Fixed cost = ₹30 lakhs
Interest = ₹10 lakhs
Calculate (i) Operating Leverage and (...
A high Inventory Turnover Ratio indicates:
Which of the following is a useful liquidity metric for short-term creditors?
A firm evaluates two projects with identical expected cash flows, but Project A has higher variability. If the firm is risk-averse, what would be its de...
A firm uses 70% debt financing at 10% interest. Its ROE rises despite flat operating profits. What explains this phenomenon?
A firm’s gross profit is ₹50 lakh, sales are ₹2 crore. What is its gross profit margin?
A company refinances a short-term loan (due in 4 months) after the balance sheet date but before the financial statements are authorised. Management arg...
Which of the following formulae correctly calculates the Operating Profit Margin?
XYZ Ltd. is a medium-sized manufacturing company. Its summarized Balance Sheet and additional financial information for the year ended 31st March 2024 a...
While preparing cash flow statement, an entity (other than a financial institution) should disclose the dividends received from its investment in shares...