You are able to collect the following information about a company for two years:

2015-16

2016-17

Trade receivables on Apr. 01

Rs.

4,00,000

Rs

5,00,000

Trade receivables on Mar. 31

Rs

5,60,000

Stock in trade on Mar. 31

Rs.

6,00,000

Rs

9,00,000

Revenue from operations (at gross profit of 25%)

Rs.

3,00,000

Rs

24,00,000

Calculate Inventory Turnover Ratio and Trade Receivables Turnover Ratio.

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Solution

or,

Note: It has been assumed that all sales are credit sales

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Similar questions

You are able to collect the following information about a company for two years:

		2015-16		2016-17
Book Debts on Apr. 01	Rs	4,00,000	Rs	5,00,000
Book Debts on Mar. 31			Rs	5,60,000
Stock in trade on Mar. 31	Rs	6,00,000	Rs	9,00,000
Revenue from Operations (at gross profit of 25%)	Rs	3,00,000	Rs	24,00,000

Calculate Inventory Turnover Ratio and Trade Receivables Turnover Ratio if in the year 2015-16 stock in trade increased by Rs 2,00,000.

From the following information calculate Gross Profit Ratio, Inventory Turnover Ratio and Trade Receivables Turnover Ratio.

	Rs
Revenue from Operations	3,00,000
Cost of Revenue from Operations	2,40,000
Inventory at the end	62,000
Gross Profit	60,000
Inventory in the beginning	58,000
Trade Receivables	32,000

Q. If value of credit revenue from operations is Rs.6,00,000 and Average Trade Receivables are Rs. 2,00,000. What will be Trade Receivables Turnover Ratio?

Calculate the amount of opening trade receivables and closing trade receivables from the following figures:

Trade Receivables turnover ratio 4 times.

Cost of Revenue from operations Rs 6,40,000

Gross profit ratio 20%

Closing trade receivables were Rs 20,000 more than at the beginning.

Q. You are able to collect the following information about company for two years:

$\begin{matrix} Items & 2004 & 2005 Books Debts on April 1 & 4, 00, 000 & 5, 00, 000 Books Debts on March 30 & 5, 60, 000 Stock in trade on March 31 & 6, 00, 000 & 9, 00, 000 Sale (at gross profit of 25 %) & 3, 00, 000 & 24, 00, 000 \end{matrix}$

Calculate stock turnover Rratio and debtor turnover ratio if in the year 2004 stock in trade increased by Rs. 2,00,000.

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		2015-16		2016-17
Trade receivables on Apr. 01	Rs.	4,00,000	Rs	5,00,000
Trade receivables on Mar. 31			Rs	5,60,000
Stock in trade on Mar. 31	Rs.	6,00,000	Rs	9,00,000
Revenue from operations (at gross profit of 25%)	Rs.	3,00,000	Rs	24,00,000

or, Note: It has been assumed that all sales are credit sales

or,

Note: It has been assumed that all sales are credit sales