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.

Open in App

Solution

or,

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

Suggest Corrections

Similar questions

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.

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.

From the following information obtained from the books of Kundan Ltd.,
Calculate the inventory turnover ratio for the years 2015-16 and 2016-17:

$\begin{matrix} Particulars & 2015 - 16 & 2016 - 17 (R s) & (R s) Inventory on 31st March & 7, 00, 000 & 17, 00, 000 Revenue from operations & 50, 00, 000 & 75, 00, 000 \end{matrix}$

(Gross profit is 25% on cost of revenue from operations)

In the year 2015-16, inventory increased by Rs 2,00,000.

Q. From the following information obtained from the books of Kundan Ltd., calculate the inventory turnover ratio for the years 2015-16 and 2016-17:

	2015-16 Rs.	2016-17 Rs.
Inventory on 31st March	$7, 00, 000$	$17, 00, 000$
Revenue from operations	$50, 00, 000$	$75, 00, 000$

(Gross profit is

25

% on cost of revenue from operations)
In the year 2015-16, inventory increased by Rs.

2, 00, 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?

Join BYJU'S Learning Program

		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

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

or,

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