Question

Following information is given about a company:

	₹			₹
Revenue From Operations, i.e., Net Sales Gross Profit	1,50,000		Opening Inventory	29,000
Cost of Revenue From Operations	30,000		Closing Inventory	31,000
(Cost of Goods Sold)	1,20,000		Debtors	16,000

From the above information, calculate following ratios:

(i) Gross Profit Ratio,

(ii) Inventory Turnover Ratio, and

(iii) Trade Receivables Turnover Ratio.

Answer 1

(i)

Sales = 1,50,000

Gross Profit = 30,000

(ii)

Opening Inventory = 29,000

Closing Inventory = 31,000

Cost of Goods Sold = 1,20,000

(iii)