Question
A company records Net Sales of ₹60,00,000, of which
50% are on credit. The opening receivables were ₹2,00,000 and the closing receivables were ₹4,00,000. Calculate the Receivables Turnover Ratio.Solution
The formula is: Receivables Turnover Ratio=Average Receivables/Credit Sales • Credit Sales = ₹60,00,000 × 50% = ₹30,00,000 • Average Receivables = (₹2,00,000 + ₹4,00,000) ÷ 2 = ₹3,00,000 Now, Receivables Turnover Ratio=30,00,0003,00,000=8.00 timesReceivables Turnover Ratio=3,00,00030,00,000 =8.00times Thus, the company’s Receivables Turnover Ratio = 8.00 times.
A factory produces two types of gadgets: Type A and Type B. In a day, it produces 300 Type A gadgets and 400 Type B gadgets. If the production cost of T...
5 ? 205 823 7405 29623
...12 10 13 18.5 25.50 �...
62 123 214 341 ? 727
...95 110 128 ? 181 222
...5, 14, 41, 122, 365, 1094, ?
4 7 24 91 462 2763
18 ...
35, 36, 40, 49 , 65 , ?
800 400 600 1500 ? 23625
...15 , 33 , 71 , 150 , 307 , 625
Relevant for Exams:
