Question
From the following information, calculate the Inventory
Turnover Ratio: Net Sales: ₹4,00,000 Average Inventory: ₹55,000 Gross Loss on Sales: 10%Solution
The Inventory Turnover Ratio is calculated using the formula: Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory Calculation of Gross Loss: Gross Loss = 10% of Net Sales = 10% of ₹4,00,000 = ₹40,000 Calculation of Cost of Revenue from Operations: Cost of Revenue from Operations = Net Sales + Gross Loss Cost of Revenue from Operations = ₹4,00,000 + ₹40,000 = ₹4,40,000 Inventory Turnover Ratio = ₹4,40,000 / ₹55,000 = 8 times
An entrepreneur is setting up his new business. He purchases some equipment. He also takes insurance on the equipment for which the premium is paid for...
Who appoints the auditor for a government company, and what is the time frame for this appointment?
Which ratios are a measure of the speed with which various accounts are converted into sales or cash?
Which of the following is not a type of securities market in India?
Under the RBI’s guidelines for import of gold by Tariff Rate Quota (TRQ) holders, how many days of advance payment are allowed for Qualified Jewellers...
Which of the following describes the relationship between systematic risk and return?
Match the following inflation types with their correct descriptions:
1. Stagflation
2. Core Inflation
3. Reflation
A. When t...
If an individual is unable to pay back the overdraft taken by him, which of the following risk is the bank facing?
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is one of the major Schemes of Government of India to protect the interest of the Senior citizens. What is t...
Which of the following statements accurately describes the concept of "crowding out" in the context of fiscal policy?
