Question : A business has Rs.58,400 in inventory, Rs.48,000 in debt, and a 6 times inventory turnover rate. 40% of all sales are made on credit, while the gross profit margin is 20%. How much will the credit sales be?
Option 1: Rs.1,62,500
Option 2: Rs.1,95,400
Option 3: Rs.1,85,200
Option 4: Rs.1,75,000
Correct Answer: Rs.1,75,000
Solution : Cost of goods sold = 58,400×6= 3,50,400; since the GP ratio is 20% on sales, it is 25% on cost. Sales = 3,50,000 + 87,500 = 4,37,500 Credit sales= 40% of 4,37,500) =1,75,000.
Hence option 4 is the correct answer.
Question :
From the following data, calculate Inventory Turnover Ratio: Total Sales Rs. 5,00,000; Sales Return Rs. 50,000; Gross Profit Rs. 90,000; Closing Inventory Rs. 1,00,000; Excess of Closing Inventory over opening inventory Rs. 20,000.
Option 1: 6 Times
Option 2: 4 Times
Option 3: 3 Times
Option 4: 5 Times
Question : Opening Inventory Rs.28,000
Closing Inventory Rs.52,000
Revenue from Operations (Sales) Rs.6,00,000
Gross Profit 25% on the cost of revenue from operations
The inventory turnover ratio will be ………
Option 1: 8 times
Option 2: 2.4 times
Option 3: 1.2 times
Option 4: 12 times
Question : Opening Inventory Rs.29,000; Closing Inventory Rs.31,000; Revenue from Operations (Sales) Rs.3,20,000; Gross Profit Ratio 25% on Revenue from Operations.
Inventory Turnover Ratio will be
Option 1: 6 times
Option 2: 4 times
Option 3: 8 times
Option 4: None of the above
Question : Average Inventory Rs.80,000
Inventory Turnover Ratio 6 times
Selling Price 25% above cost
Gross profit is -------
Option 1: Rs 1,20,000
Option 2: Rs 80,000
Option 3: Rs 60,000
Question : Revenue from Operations (Sales) Rs. 16,00,000; Average Inventory Rs.2,20,000; Gross Loss Ratio 5%. Inventory turnover ratio will be
Option 1: 7.63 times
Option 2: 7 times
Option 3: 7.4
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile