Question
Goods purchased ₹1,00,000. Sales ₹90,000. Margin 20% on cost. Closing Inventory = ?
Solution
Let Cost = 100, Margin = 20%, so Sales = ₹120. Cost to Sales ratio = 100 / 120 = 5/6 Given Sales = ₹90,000 → Cost of Sales = 90,000 × 5/6 = ₹75,000 Purchases = ₹1,00,000 Closing Inventory = 1,00,000 - 75,000 = ₹25,000
More Financial Management Questions
- Book-keeping is mainly concerned with?
- How can presenters avoid the use of jargon in their communication?
- What type of insurance will apply if a family member has broken his/her leg in an accident while on vacation in Singapore?
- Absolute poverty is measured using a fixed income threshold. Which unemployment type keeps people below this threshold even when they are counted as employ...
- Which of the following instruments is not a part of money market?
- What theory of motivation suggests that individuals are motivated by a hierarchy of needs, starting with basic physiological needs and progressing to highe...
- The concept of "morale" refers to the overall emotional and psychological state of a group or organization, influencing their willingness to cooperate and ...
- Which of the following models can be used to calculate the value of call and put option?
- Which term describes the percentage of each sales rupee that remains after a company has paid for its goods?
- Who is the new Managing Director and Chief Executive Officer (MD and CEO) of IndiaFirst Life Insurance?
Relevant for Exams:
