Question : Revenue from Operations (Sales) Rs. 16,00,000; Average Inventory Rs.2,20,000; Gross Loss Ratio 5%. Inventory turnover ratio will be
Option 1: 7.63 times
Option 2: 7 times
Option 3: 7.4
Option 4: None of the above
Correct Answer: 7.63 times
Solution : Answer = 7.63 times
$\text{Inventory Turnover Ratio}= \frac{\text{Cost of goods sold}}{\text{Average Inventor}}$
= 16,80,000/2,20,000
Cost of goods sold = Sales + G.loss
= 16,00,000 + 80,000
= 16,80,000
Hence, the correct option is 1.
Question : Opening Inventory Rs.29,000; Closing Inventory Rs.31,000; Revenue from Operations (Sales) Rs.3,20,000; Gross Profit Ratio 25% on Revenue from Operations.
Inventory Turnover Ratio will be
Question : Opening Inventory Rs.28,000
Closing Inventory Rs.52,000
Revenue from Operations (Sales) Rs.6,00,000
Gross Profit 25% on the cost of revenue from operations
The inventory turnover ratio will be ………
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile