ACCOUNTING RATIOS T.S.GREWAL CH-3 (Inventory Turnover Ratio) Que No 78,80,81,82 Class -12 Accounts
[Ans.: 0.33: 1.]
79. Debt to Capital Employed Ratio of a company is 0.4: 1. State giving reasons, which of the following will improve, reduce or not change the ratio?
(i) Sale of Machinery at a loss of 50,000.
(ii) Purchase of Stock-in-Trade on credit of two months for 80,000.
(iii) Conversion of Debentures into Equity Shares of ₹ 5,00,000.
(iv) Purchase of Fixed Assets for 4,00,000 on a long-term deferred payment basis.
[Ans.: (i) Improve, (ii) Not Change, (iii) Reduce, (iv) Improve.]
Inventory Turnover Ratio
80. From the following details, calculate Inventory Turnover Ratio:
₹
Cost of Revenue from Operations (Cost of Goods Sold)
2,50,000
Inventory in the beginning of the year
3,50,000
Inventory at the close of the year
[Ans.: Inventory Turnover Ratio = 3 Times.]
81. Cost of Revenue from Operations (Cost of Goods Sold) 5,00,000; Purchases 5,50,000; Opening Inventory 1,00,000.
Calculate Inventory Turnover Ratio.
[Ans.: Inventory Turnover Ratio = 4 Times.]
[Hint: Closing Inventory = Opening Inventory + Purchases - Cost of Revenue from Operations (Cost of Goods Sold).]
82. Calculate Inventory Turnover Ratio from the following information: Opening Inventory is 50,000; Purchases 6,00,000; Gross Profit Ratio 30%. 3,90,000; Revenue from Operations, i.e., Net Sales
[Ans.: Inventory Turnover Ratio = 12 Times.]
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