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From the Following Information, Calculate Inventory Turnover Ratio: - Accountancy

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प्रश्न

From the following information, calculate Inventory Turnover Ratio:

 
Revenue from Operations 16,00,000
Average Inventory 2,20,000
Gross Loss Ratio 5%  
योग

उत्तर

Cost of Revenue from Operations=Revenue from Operations+Gross Loss                                                    

=16,00,000 + 80,000 = Rs 16,80,000 

 Inventory Turnover Ratio

= `"Cost of Revenue from Operations"/"Average Inventory" = 1680000/220000 = 7.64` times

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अध्याय 3: Accounting Ratios - Exercises [पृष्ठ ९९]

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टीएस ग्रेवाल Accountancy - Analysis of Financial Statements [English] Class 12
अध्याय 3 Accounting Ratios
Exercises | Q 65 | पृष्ठ ९९

संबंधित प्रश्न

Short Answer Question

The average age of inventory is viewed as the average length of time inventory is held by the firm for which explain with reasons.


Cost of Revenue from Operations is Rs 1,50,000. Operating expenses are Rs 60,000. Revenue from Operations is Rs 2,50,000. Calculate Operating Ratio.


Calculate Inventory Turnover Ratio from the data given below:

 

 

Rs

Inventory in the beginning of the year

10,000

Inventory at the end of the year

5,000

Carriage

2,500

Revenue from Operations

50,000

Purchases

25,000


You are able to collect the following information about a company for two years:

 

 

 

2015-16

 

2016-17

Trade receivables on Apr. 01

 Rs.

4,00,000

 Rs

5,00,000

Trade receivables on Mar. 31

 

 

Rs

5,60,000

Stock in trade on Mar. 31

Rs.

6,00,000

Rs

9,00,000

Revenue from operations (at gross profit of 25%)

Rs.

3,00,000

Rs

 24,00,000

Calculate Inventory Turnover Ratio and Trade Receivables Turnover Ratio.


X Ltd. has Current Ratio of 4.5 : 1 and a Quick Ratio of 3 : 1. If its inventory is  ₹  36,000, find out its total Current Assets and total Current Liabilities.


Debt to Equity Ratio of a company is 0.5:1. Which of the following suggestions would increase, decrease or not change it:

(i) Issue of Equity Shares:

(ii) Cash received from debtors:

(iii) Redemption of debentures;

(iv) Purchased goods on Credit?


On the basis of the following information, calculate Total Assets to Debt Ratio:

Particulars

Particulars

Capital Employed

50,00,000

Share Capital

35,00,000

Current Liabilities

20,00,000

10% Debentures

10,00,000
Land and Building 60,00,000 General Reserve 3,00,000
Trade Receivable 4,00,000 Surplus, i.e., Balance in Statement of Profit and Loss 2,00,000
Cash and Cash Equivalents 5,00,000    

Investment (Trade)

1,00,000

 

 

From the following information, calculate Proprietary Ratio:

Share Capital ₹ 300000
Reserve and Surplus ₹ 180000
Non-current Assets ₹ 1320000
Current Assets ₹ 600000

Calculate Inventory Turnover Ratio from the following information:

Opening Inventory ₹ 40,000; Purchases ₹ 3,20,000; and Closing Inventory ₹ 1,20,000.
State, giving reason, which of the following transactions would (i) increase, (ii) decrease, (iii) neither increase nor decrease the Inventory Turnover Ratio:
(a) Sale of goods for ₹ 40,000 (Cost ₹ 32,000).
(b) increase in the value of Closing Inventory by ₹ 40,000.
(c) Goods purchased for ₹ 80,000.
(d) Purchases Return ₹ 20,000.
(e) goods costing ₹ 10,000 withdrawn for personal use.
(f) Goods costing ₹ 20,000 distributed as free samples.


Calculate Inventory Turnover Ratio from the data given Below:

Inventory in the beginning of the year Rs 20000
Inventory at the end of the year Rs 10000
Purchases Rs 50,000
Carriage Inwards Rs 5000
Revenue from Operations, i.e., Sales  Rs 100000

State the significance of this ratio.


Following figures have been extracted from Shivalika Mills Ltd.

Inventory in the beginning of the year ₹ 60,000.
Inventory at the end of the year ₹ 1,00,000. 
Inventory Turnover Ratio 8 times.
Selling price 25% above cost.
Compute amount of Gross Profit and Revenue from Operations (Net Sales).

Inventory Turnover Ratio 5 times; Cost of Revenue from Operations (Cost of Goods Sold) ₹ 18,90,000. Calculate Opening Inventory and Closing Inventory if Inventory at the end is 2.5 times more than that in the beginning.


Compute Gross Profit Ratio from the following information:
Revenue from Operations, i.e., Net Sales = ₹4,00,000; Gross Profit 25% on Cost.


From the following information, calculate Gross Profit Ratio:

     
Credit Sales 5,00,000   Decrease in Inventory 10,000
Purchases 3,00,000   Returns Outward 10,000
Carriage Inwards 10,000   Wages 50,000
      Rate of Credit Sale to Cash Sale 4:1

From the following calculate:

(a) Current Ratio; and 
(b) Working Capital Turnover Ratio.
   
(i) Revenue from Operations 1,50,000
(ii) Total Assets 1,00,000
(iii) Shareholders' Funds 60,000
(iv) Non-current Liabilities 20,000
(v) Non-current Assets 50,000

An annual Report is issued by a company to its ______?


The ______ ratios provide the information critical to the long run operation to the firm.


X Ltd. has a Debt-Equity Ratio of 3 : 1. According to the management, it should be maintained at 1 : 1. What are the choices in front of management to do so?


Which of the following measures the firm's ability to meet its long-term obligations?


Debt to Capital Employed ratio is 0.3:1. State whether the following transaction, will improve, decline or will have no change on the Debt to Capital Employed Ratio. Also give a reason for the same.

Tax Refund of ₹ 50,000 during the year.


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