Question

From the following details, calculate Current ratio: Cash in Hand: Rs. 20,000 Inventories: Rs.10,00 Current liabilities: Rs. 60,000 Current assets: Rs. 80,000

Q: Answer-From the following details, calculate Current ratio: Cash in Hand: Rs. 20,000 Inventories: Rs.10,0...

Current Ratio Current Assets Current Liabilities 80,00060,000 1.33 Inventory turnover is a ratio showing how many times a companys inventory is sold and replaced over a period of time. Inventory Turnover equals to Cot of Goods Sold COGSAverage Inventory. Higher inventory turns equate to higher sales, especially when compared to a competitor in the same market. Inventory turns are also an indicator of how well a company is matching its inventory levels to support its sales.