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Question
From the following particulars of NB Ltd., calculate its Cost of Revenue from Operations for the year 2023-24.
| Particulars | |
| Current Assets | ₹ 6,80,000 |
| Current Liabilities | ₹ 3,40,000 |
| Quick Ratio | 1.5 : 1 |
| Inventory Turnover Ratio | 4 times |
Solution
Quick Ratio = `"All Current Assets − Inventories (excluding Loose Tools & Spare Parts) - Prepaid Expenses"/"Current Liabilities"`
1.5 : 1 = `(6,80,000 - "Inventory")/(3,40,000)`
Inventory = ₹ 1,70,000
Inventory Turnover Ratio = `"Cost of revenue from Operations"/"Average Inventory"`
4 = `"Cost of revenue from Operations"/(1,70,000)`
Cost of revenue from Operations = ₹ 6,80,000
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| Particulars | (₹) (in millions) |
| Opening Inventory of consumables (raw materials) | 264.79 |
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