Calculate Inventory Turnover Ratio from the following:

₹

Opening Inventory 29,000

Closing Inventory 31,000

Revenue from Operations, i.e., Sales 3,20,000

Gross Profit Ratio 25%

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Solution

Sales = 3,20,000

Gross Profit = 25% on Sales

Cost of Goods Sold = Total Sales − Gross Profit

= 3,20,000 − 80,000 = 2,40,000

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Similar questions

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.
Calculate:
(i) Inventory Turnover Ratio and
(ii) Average Age of Inventory.

Q. Calculate Inventory Turnover Ratio from the following information:
Opening Inventory is ₹50,000; Purchases ₹3,90,000; Revenue from Operations, i.e., Net Sales ₹6,00,000; Gross Profit Ratio 30%.

Q. (i) Revenue from Operations: Cash Sales ₹4,20,000; Credit Sales ₹6,00,000; Return ₹20,000. Cost of Revenue from Operations or Cost of Goods Sold ₹8,00,000. Calculate Gross Profit Ratio.
(ii) Average Inventory ₹1,60,000; Inventory Turnover Ratio is 6 Times; Selling Price 25% above cost. Calculate Gross Profit Ratio.
(iii) Opening Inventory ₹1,00,000; Closing Inventory ₹60,000; Inventory Turnover Ratio 8 Times; Selling Price 25% above cost. Calculate Gross Profit Ratio.

Q. 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.

From the following information, calculate inventory turnover ratio; Revenue from Operations (Sales) Rs. 16,00,000; Average Inventory Rs. 2,20,000; Gross Loss Ratio 5%.

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	₹
Opening Inventory	29,000
Closing Inventory	31,000
Revenue from Operations, i.e., Sales	3,20,000
Gross Profit Ratio 25%

Calculate Inventory Turnover Ratio from the following: ₹ Opening Inventory 29,000 Closing Inventory 31,000 Revenue from Operations, i.e., Sales 3,20,000 Gross Profit Ratio 25%

Sales = 3,20,000 Gross Profit = 25% on Sales Cost of Goods Sold = Total Sales − Gross Profit = 3,20,000 − 80,000 = 2,40,000

Calculate Inventory Turnover Ratio from the following:

₹

Opening Inventory 29,000

Closing Inventory 31,000

Revenue from Operations, i.e., Sales 3,20,000

Gross Profit Ratio 25%

Sales = 3,20,000

Gross Profit = 25% on Sales

Cost of Goods Sold = Total Sales − Gross Profit

= 3,20,000 − 80,000 = 2,40,000