Advertisements
Advertisements
प्रश्न
From the following information, calculate the value of opening and closing inventory:
Inventory Turnover Ratio - 4 times.
Gross Profit = 20% on Revenue from Operations.
Revenue from Operations = ₹ 10,00,000.
Opening inventory is 25% of the inventory at the end.
उत्तर
Revenue from operations = ₹ 10,00,000
Gross Profit = 20% on Revenue from Operations
= `20/100 xx ₹ 10,00,000`
= ₹ 2,00,000
Cost of Revenue from Operations = Revenue from Operations - Gross Profit
= ₹ 10,00,000 - ₹ 2,00,000 = ₹ 8,00,000
Inventory Turnover Ratio = `"Cost of Revenue from Operations"/"Average Inventory"`
Inventory Turnover Ratio = `(₹ 8,00,000)/ "Average Inventory"`
Average Inventory = `(₹ 8,00,000)/ 4`
Average Inventory = ₹ 2,00,000
Opening Inventory is 25% of the inventory at the end.
∴ Closing Inventory = `x`
Opening Inventory = 25% of `x`
=`25/100 xx x =1/4x "or" x/4`
Average Inventory = `("Opening Inventory" +"Closing Inventory")/2`
₹ 2,00,000 `= (x/4+x)/2`
`₹ 2,00,000 xx 2 = x/4 +x`
₹ 4,00,000 =` (5x)/4`
`5x = ₹ 4,00,000xx 4`
`x= (₹ 16,00,000)/5`
`x = ₹ 3,20,000`
Closing Inventory = ₹ 3,20,000
Opening Inventory =`(₹ 3,20,000)/4`= ₹ 80,000
APPEARS IN
संबंधित प्रश्न
What is meant by 'Activity Ratios'?
From the following information calculate inventory turnover ratio; Revenue from operations Rs.16,00,000; Average Inventory Rs.2,20,000; Gross Loss Ratio 5%.
From the following information obtained from the books of Kundan Ltd., calculate the inventory turnover ratio for the years 2015-16 and 2016-17 :
| 2015-16 (Rs) | 2016-17(Rs) | |
| Inventory on 31st March | 7,00,000 | 17,00,000 |
| Revenue from operations | 50,00,000 | 75,00,000 |
(Gross profit is 25% on the cost of revenue from operations)
In the year 2015-16, inventory increased by Rs 2,00,000.
The quick ratio of a company is 1.5: 1. A state with reason which of the following transactions would
i. increase:
ii. decrease or
iii. not change the ratio
a. Paid rent Rs 3,000 in advance.
b. Trade receivables included a debtor Shri Ashok who paid his entire amount due Rs 9,700.
The Quick Ratio of a company is 0.8:1. State whether the Quick Ratio will improve, decline or will not change in the
following cases:
(i) Cash collected from Debtors Rs. 50,000.
(ii) Creditors of Rs. 20,000 paid off.
Choose the appropriate alternative from the given options:
Which of the following is not an activity ratio?
| Inventory in the beginning | ₹ 30,000 |
| Inventory at the end | ₹ 50,000 |
| Net Purchases | ₹ 5,00,000 |
| Wages | ₹ 25,000 |
| Salaries | ₹ 40,000 |
| Revenue from operations | ₹ 8,00,000 |
| Carriage Inwards | ₹ 5,000 |
| Returns Outwards | ₹ 30,000 |
Calculate Inventory Turnover Ratio
What will be the amount of gross profit of a firm if its average inventory is ₹80,000, Inventory turnover ratio is 6 times, and the Selling price is 25% above cost?
Interest on Loans given by a financial company is shown in the Statement of Profit and Loss as ______.
Cost of goods sold =____.
The 'Inventory Turnover Ratio' from the following information will be:
| (₹) | |
| Revenue from Operations | 12,00,000 |
| Average Inventory | 2,00,000 |
| Gross loss ratio | 20% |
If revenue from operations is ₹ 9,00,000; gross profit is 25% on cost and operating expenses are ₹ 90,000 the operating ratio will be:
The spreadsheet below shows the sales of Jupiter Ltd. made by four salesmen in the four quarters of the financial year 2022-23:
| A | B | C | D | E | F | G | |
| 1 | Sales in ₹ | ||||||
| 2 | Salesman No. | Qtr 1 | Qtr 2 | Qtr 3 | Qtr 4 | Total Sales | Commission @ 10% of sales (₹) |
| 3 | S1 | 6,000 | 7,000 | ?? | 9,000 | ||
| 4 | S2 | 8,000 | 9,000 | 8,200 | 8,500 | 33,700 | |
| 5 | S3 | 9,600 | 8,400 | 9,200 | 9,500 | 36,700 | ?? |
| 6 | S4 | ?? | 7,600 | 8,000 | 12,000 | ||
| 7 | Total | ||||||
Based on the above transactions and the information given in the spreadsheet, answer the following question:
- Write the formula to calculate the cost of the goods sold by Salesman No. S2 in Qtr 2, if he had sold the goods at a profit of 10% of the sales.
- Write the formula to calculate the sales made by Salesman No. S2 in Qtr 3 in cell D3, if he had sold the goods at a profit of 10% of the cost.
- In Qtr 1, Salesman No. S4 sold goods costing ₹ 8,800 at a loss of 10% of the sales. What is the selling price of the goods in cell B6.
- The company gives a commission of 10% on its total sales. Write the formula to calculate the commission earned by Salesman No. S3 in cell G5.
