Question
Given the following information, calculate the Inventory
Turnover Ratio: Cash Revenue from Operations: ₹50,000 Credit Revenue from Operations: ₹1,50,000 Gross Profit: 25% on Cost Closing Inventory: 3 times the Opening Inventory Opening Inventory: 10% of Cost of Revenue from OperationsSolution
The Inventory Turnover Ratio is calculated using the formula: Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory Calculation of Cost of Revenue from Operations: If Gross Profit is 25% on Cost, then for every ₹125 of Revenue, the Cost of Revenue is ₹100. Given Revenue from Operations = ₹2,00,000 (₹50,000 Cash + ₹1,50,000 Credit), the Cost of Revenue = ₹1,60,000. Calculation of Opening Inventory: Opening Inventory = 10% of Cost of Revenue = ₹1,60,000 × 10% = ₹16,000 Calculation of Closing Inventory: Closing Inventory = 3 × Opening Inventory = 3 × ₹16,000 = ₹48,000 Average Inventory: Average Inventory = (Opening Inventory + Closing Inventory) / 2 = (₹16,000 + ₹48,000) / 2 = ₹32,000 Inventory Turnover Ratio = ₹1,60,000 / ₹32,000 = 5 times
- In a warehouse, there are 200 washing machines and 300 microwaves. The average price of a washing machine is Rs. 15,000 while the average price of a microw...
The average of 8 numbers is 5.95. The average of two of them is 5.4, while the average of the other two is 5.86. the average of the remaining four numbe...
The average of 13 numbers is 10.The average of first 6 numbers is 8 and that of the last 6 numbers is 10. What will be the 13th number?
The average wage of a group of 25 labourers is Rs. 470. If 4 persons receiving average wage of Rs. 350 leave the group and 2 persons receiving average w...
The average of five positive numbers is 56. If the first number is three-fourth of the sum of the last four numbers, then the average of the last four n...
The average of 8 numbers is 22. When two new numbers 'p' and 'q' are added, the average increases by 3. If p - q = 10, find the value of q.
A student has two types of markers: Marker A priced at $3 each and Marker B priced at $5 each. If the student purchases a total of 12 markers, with an a...
In a company, the average salary of 30 employees is ₹40,000. Out of these, the average salary of 20 employees is ₹35,000, and the average salary of ...
Each question contains a statement followed by Quantity I and II. Read the information clearly and answer your questions accordingly.
Qu...
A set contains ten numbers. The average of the first six numbers is (x - 2), and the average of the last three numbers is (x + 3). The average of the en...
