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 450-metre race, ‘A’ beats ‘B’ by 10 seconds or 50 metres. Find the time taken by ‘B’ to finish the race.
Gagan traveled a certain distance at his regular speed. If he had increased his speed by 20 km/h, he would have taken 2 hours less to complete the journ...
Ratio of speeds of ‘A’ and ‘B’ is 6:11, respectively. If they participate in a 220-metre race and ‘B’ gives ‘A’, a head start of ‘m’...
- Two trucks, ‘P’ and ‘Q’, start from locations ‘U’ and ‘V’ respectively, moving towards each other at the same time. After 10 hours they mee...
A motor car travels a distance of 180 km at the speed of 20 kmph. If it covers the next 100 km of its journey at the speed of 20 kmph and last 40 km of ...
The speed of ‘A’ and ‘B’ is 65 km/hr and 40 km/hr, respectively. If the distance covered by ‘A’ in ‘x&r...
- Two individuals, 'A' and 'B', set off towards each other from points 'P' and 'Q', respectively. 'A' moves at a speed of (x + 8) km/hr, while 'B' travels at...
A boat can travel 30 km downstream in 45 min. The ratio of the speed of the boat in still water to the speed of the stream is 5: 3. How much time will t...
A train traveling at a speed of 72 km/h takes 15 seconds to cross a pole. If the same train crosses a platform in 40 seconds, find the length of the pla...
Amit covered 360 kilometers in total trip time. He covered the remaining 200 km on a bicycle at a speed that was 5 km/h slower than that of the bus afte...