Question
SDF Ltd recorded Net Sales of ₹10,00,000 during the
year. Its Gross Profit was ₹2,50,000. If the inventory of the company at the end of the year was ₹1,25,000, what is the Inventory Turnover Ratio?Solution
Inventory Turnover = COGS / Inventory COGS = Sales – Gross Profit = ₹10,00,000 - ₹2,50,000 = ₹7,50,000 Thus, Inventory Turnover = ₹7,50,000 / ₹1,25,000 = 6 times
If cash inflow from operations is ₹12 lakh, investing cash outflow is ₹5 lakh, and financing inflow is ₹3 lakh, what is net cash flow?
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...
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