Advertisements
Advertisements
प्रश्न
Calculate Inventory Turnover Ratio in each of the following alternative cases:
Case 1: Cash Sales 25% of Credit Sales; Credit Sales ₹3,00,000; Gross Profit 20% on Revenue from Operations, i.e., Net Sales; Closing Inventory ₹1,60,000; Opening Inventory ₹40,000.
Case 2: Cash Sales 20% of Total Sales; Credit Sales ₹4,50,000; Gross Profit 25% on Cost; Opening Inventory ₹37,500; Closing Inventory ₹1,12,500.
उत्तर
Case 1
Credit Sales = 3,00,000
Cash sales = 25% of Credit Sales
∴ Cash Sales = `300000 xx 25/100 = 75000`
Total Sales = Cash Sales + Credit Sales
= 3,00,000 + 75,000 = 3,75,000
Gross Profit = 20% on Sales
∴ Gross Profit = `375000 xx 20/100 = 75000`
Cost of Goods Sold = Total Sales − Gross Profit
= 3,75,000 − 75,000 = 3,00,000
Average Stock = `("Opening Stock + Closing Stock")/2`
`=(40000 + 160000)/2 = 100000`
Inventory Turnover Ratio=`"Cost of goods Sold"/"Average Stock"`
`= 300000/100000` = 3 times
Case 2
Let Total Sales = x
Cash sales = `"Total Sales" xx 20/100`
Cash Sales = `x xx 20/100 = (20x)/100`
Total Sales = Cash Sales + Credit Sales
`x = (20x)/100 + 450000`
or, `x - (20x)/100 = 450000`
or, `(80x)/100 = 450000`
or,x = 562500
Let cost of goods sold = a
Gross Profit = `a xx 25/100 = (25a)/100`
Gross Profit = Sales − Cost of Goods Sold
`(25a)/100 = 562500 - a`
or, `a + (25a)/100 = 562500`
or, `(125a)/100` = 562500
or, a=450000
Cost of goods sold = a = 450000
Average Stock
= `("Opening Stock + Closing Stock")/2`
`= (37500 + 112500)/2` = 75000
Stock turnover Ratio =`"Cost of goods Sold"/"Average Stock"`
= `450000/75000 = 6 "times"`
APPEARS IN
संबंधित प्रश्न
What relationship will be established to study:
Working Capital Turnover
Calculate Debt to Equity Ratio: Equity Share Capital ₹ 5,00,000; General Reserve ₹ 90,000; Accumulated Profits ₹ 50,000; 10% Debentures ₹ 1,30,000; Current Liabilities ₹ 1,00,000.
Assuming That the Debt to Equity Ratio is 2 : 1, state giving reasons, which of the following transactions would (i) increase; (ii) Decrease; (iii) Not alter Debt to Equity Ratio:
From the following details, calculate Inventory Turnover Ratio:
| ₹ | |
| Cost of Revenue from Operations (Cost of Goods Sold) | 4,50,000 |
| Inventory in the beginning of the year | 1,25,000 |
| Inventory at the close of the year | 1,75,000 |
| Credit Revenue from Operations, i.e., Net Credit Sales for the year | 1,20,000 |
| Debtors | 12,000 |
| Billls Receivable | 8,000 |
Calculate Trade Receivables Turnover Ratio.
Closing Trade Receivables ₹ 1,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 40,000; Revenue from Operations, i.e., Net Sales ₹ 6,00,000. Calculate Trade Receivables Turnover Ratio.
Calculate Trade payables Turnover Ratio from the following information:
Opening Creditors ₹ 1,25,000; Opening Bills Payable ₹ 10,000; Closing Creditors ₹ 90,000; Closing bills Payable ₹ 5,000; Purchases ₹ 9,50,000; Cash Purchases ₹ 1,00,000; Purchases Return ₹ 45,000.
A company earns Gross Profit of 25% on cost. For the year ended 31st March, 2017 its Gross Profit was ₹ 5,00,000; Equity Share Capital of the company was ₹ 10,00,000; Reserves and Surplus ₹ 2,00,000; Long-term Loan ₹ 3,00,000 and Non-current Assets were ₹ 10,00,000.
Compute the 'Working Capital Turnover Ratio' of the company.
Compute Gross Profit Ratio from the following information:
Revenue from Operations, i.e., Net Sales = ₹4,00,000; Gross Profit 25% on Cost.
Revenue from Operations, i.e., Net Sales ₹ 6,00,000. Calculate Net Profit Ratio.
y Ltd.'s profit after interest and tax was ₹ 1,00,000. Its Current Assets were ₹ 4,00,000; Current Liabilities ₹ 2,00,000 ; Fixed Assets ₹ 6,00,000 and 10% Long-term Debt ₹ 4,00,000. The rate of tax was 20%. Calculate 'Return on Investment' of Y Ltd.
Following is the Balance Sheet of the Bharati Ltd. as at 31st March, 2019:
|
Particulars |
Note No. |
Amount (₹) |
|
| I. EQUITY AND LIABILITIES
1. Shareholder's Funds |
|||
|
(a) Share Capital |
7,50,000 |
||
|
(b) Reserves and Surplus: |
|||
|
Surplus, i.e., Balance in Statement of Profit and Loss: |
|||
|
Opening Balance |
6,30,000 |
20,88,000 |
|
|
Add: Transfer from Statement of Profit and Loss |
14,58,000 |
||
|
2. Non-Current Liabilities |
|||
|
15% Long-term Borrowings |
24,00,000 |
||
|
3. Current Liabilities |
12,00,000 |
||
|
Total |
64,38,000 |
||
| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
(a) Fixed Assets |
27,00,000 |
||
|
(b) Non-Current Investments: |
|||
|
(i) 10% Investments |
3,00,000 |
||
|
(ii) 10% Non-trade Investments |
1,80,000 |
||
| 2. Current Assets |
32,58,000 |
||
|
Total |
64,38,000 |
||
You are required to calculate Return on Investment for the year 2018-19 with reference to Opening Capital Employed.
The most precise test of liquidity is:
An annual Report is issued by a company to its ______?
Which are the ratios that comes under traditional basis of classification?
The important activity ratios calculated under Activity (or Turnover) Ratios are ______?
Consider the following data and answer the question that follows:
| Particulars | ₹ |
| Revenue From Operations | 12,00,000 |
| Cost of Revenue from Operations | 9,00,000 |
| Operating Expenses | 15,000 |
| Inventory | 20,000 |
| Other Current Assets | 2,00,000 |
| Current Liabilities | 75,000 |
| aid up Share Capital | 4,00,000 |
| Statement of Profit and Loss (Dr.) | 47,500 |
| Total Debt | 2,50,000 |
What is the working capital turnover ratio?
The ______ measures the activity of a firm's inventory.
The ______ is useful in evaluating credit and collection policies.
