Question : Cash Revenue from Operations Rs. 1,30,000; Credit Revenue from Operations Rs.3,80,000; Revenue from Operations Returns Rs. 10,000; Liquid Assets Rs. 1,40,000; Current Liabilities Rs. 1,05,000 and Inventory Rs. 90,000. Working capital turnover ratio will be
Option 1: 4 times
Option 2: 2 times
Option 3: 2.25 times
Option 4: None of the above
Correct Answer: 4 times
Solution : Answer = 4 times. Working capital ratio= $\frac{\text{Net sales}}{\text{Net working capital}}$= $\frac{5,00,000}{1,25,000}$= 4 times. Net sales= 1,30,000+ 3,80,000- 10,000= 5,10,000- 10,000= 5,00,000. Working capital= 2,30,000- 1,05,000= 1,25,000 CA= Liquid assets+ stock= 1,40,000+ 90,000= 2,30,000. Hence, the correct option is 1.
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 : 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 : Credit Revenue from Operations Rs. 2,00,000; Opening Trade Receivables Rs. 30,000 and Closing Trade Receivables Rs. 50,000 . which of the following transactions will Decrease ....................
Option 1: Collection from trade receivables Rs. 10,000
Option 2: Sold goods on credit Rs. 20,000
Option 3: Revenue from Operations returns Rs. 4,000
Option 4: Credit purchase Rs. 50,000
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