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
Option 4: None of the above
Correct Answer: Rs 1,20,000
Solution : Answer = Rs 1,20,000
I.T. Ratio $=\frac{\text { Cost of goods sold }}{\text { Average Inventory }}$
$=6$ times $=\frac{\text { Cost of Goods Sold }}{80,000}$
Cost of goods sold = 80,000 $\times$ 6 = 4,80,000
$=$ G. Profit $=4,80,000 \times \frac{25}{100}=1,20,000 $ Hence, the correct option is 1.
Question : Average Inventory Rs.95,000
Inventory Turnover Ratio 3 times
Gross Profit 25% of Revenue from Operations. Cost of revenue from operation will be
Option 1: Rs 3,00,000
Option 2: Rs 2,85,000
Option 3: Rs 2,00,000
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
Question :
If stock turnover ratio = 6 times; Average stock = Rs.8,000; Selling price = 25% above cost. What is the amount of gross profit?
Option 1: Rs.4,000
Option 2: Rs.2,000
Option 3: Rs.12,000
Option 4: Rs.10,000
Question : A Trader carries an average inventory of Rs. 2,00,000. His Inventory Turnover Ratio is 8 Times. He sells goods at a profit of 25% on cost. The Gross Profit Ratio will be
Option 1: 25%
Option 2: 50%
Option 3: 20%
Option 4: 15%
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