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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"`
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संबंधित प्रश्न
Balance Sheet had the following amounts as at 31st March, 2019:
| ₹ | ₹ | |||
| 10% Preference Share Capital | 5,00,000 | Current Assets | 12,00,000 | |
| Equity Share Capital | 15,00,000 | Current Liabilities | 8,00,000 | |
| Securities Premium Reserve | 1,00,000 | Investments (in other companies) | 2,00,000 | |
| Reserves and Surplus | 4,00,000 | Fixed Assets-Cost | 60,00,000 | |
| Long-term Loan from IDBI @ 9% | 30,00,000 | Depreciation Written off | 14,00,000 |
Calculate ratios indicating the Long-term and the Short-term financial position of the company.
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 Interest Coverage Ratio:
| ₹ | |
| 10,000 Equity Shares of ₹10 each | 1,00,000 |
| 8% Preference Shares | 70,000 |
| 10% Debentures | 50,000 |
| Long-term Loans from Bank | 50,000 |
| Interest on Long-term Loans from Bank | 5,000 |
| Profit after Tax | 75,000 |
| Tax | 9,000 |
Cost of Revenue from Operations (Cost of Goods Sold) ₹5,00,000; Purchases ₹5,50,000; Opening Inventory ₹1,00,000.
Calculate Inventory Turnover Ratio.
From the following information, determine Opening and Closing inventories:
Inventory Turnover Ratio 5 Times, Total sales ₹ 2,00,000, Gross Profit Ratio 25%. Closing Inventory is more by ₹ 4,000 than the Opening Inventory.
₹ 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold). Inventory Turnover Ratio 8 times; Inventory in the beginning is 2 times more than the inventory at the end. Calculate value of Opening and Closing Inventories
Closing Trade Receivables ₹ 1,20,000, Revenue from Operations ₹ 14,40,000. Provision for Doubtful Debts ₹ 20,000. Calculate Trade Receivables Turnover Ratio.
Closing Trade Receivables ₹ 4,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 2,00,000; Revenue from Operations, i.e., Revenue from Operations, i.e., Net Sales ₹ 15,00,000. Calculate Trade Receivables Turnover Ratio
[Hint: 1. Net Credit Sales = Total Sales − Cash Sales
2. Opening Trade Receivables = Closing Trade Receivables − Excess of Closing Trade Receivables over Opening Trade Receivables.]
A limited company made Credit Sales of ₹ 4,00,000 during the financial period. If the collection period is 36 days and the year is assumed to be 360 days, calculate:
- Trade Receivables Turnover Ratio;
- Average Trade Receivables;
- Trade Receivables at the end when Trade Receivables at the end are more than that in the beginning by ₹ 6,000.
Compute Gross Profit Ratio from the following information:
Cost of Revenue from Operations (Cost of Goods Sold) ₹5,40,000; Revenue from Operations (Net Sales) ₹6,00,000.
Calculate Operating Ratio from the following information:
Operating Cost ₹ 6,80,000; Gross Profit 25%; Operating Expenses ₹ 80,000.
Calculate Operating Profit Ratio from the Following:
| ₹ | |
| Revenue from Operations (Net Sales) | 5,00,000 |
| Cost of Revenue from Operations (Cost of Goods Sold) | 2,00,000 |
| Wages | 1,00,000 |
| Office and Administrative Expenses | 50,000 |
| Interest on Borrowings | 5,000 |
What will be the Operating Profit Ratio, if Operating Ratio is 82.59%?
Calculate Operating Profit Ratio,in each of the following alternative cases:
Case 1: Revenue from Operations (Net Sales) ₹ 10,00,000; Operating Profit ₹ 1,50,000.
Case 2: Revenue from Operations (Net Sales) ₹ 6,00,000; Operating Cost ₹ 5,10,000.
Case 3: Revenue from Operations (Net Sales) ₹ 3,60,000; Gross Profit 20% on Sales; Operating Expenses ₹ 18,000
Case 4: Revenue from Operations (Net Sales) ₹ 4,50,000; Cost of Revenue from Operations ₹ 3,60,000; Operating Expenses ₹ 22,500.
Case 5: Cost of Goods Sold, i.e., Cost of Revenue from Operations ₹ 8,00,000; Gross Profit 20% on Sales; Operating Expenses ₹ 50,000.
The Debt Equity ratio of a company is 1: 2. State whether 'Issue of bonus shares' will increase, decrease or not change the Debt Equity Ratio.
Debt-equity ratio is a sub-part of ___________.
Current ratio is also known as ____________.
The ______ is useful in evaluating credit and collection policies.
How much amount will be added while computing Net Profit before Tax?
| 01.04.2020 | 31.03.2021 | |
| Provision for Tax | ₹ 54,000 | ₹ 72,900 |
Tax paid during the year ended 31st March 2021 is ₹ 64,800.
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.
