Question : A firm made credit Revenue from Operations (Credit Sales) of Rs.5,40,000 during the year. If the trade receivables turnover ratio is 9 times, The value of opening and closing trade Receivables, if the closing trade receivables are more by Rs.8,000 than the opening trade receivable will be
Option 1: Opening trade receivable Rs 56,000 closing trade receivable Rs 64,000
Option 2: Opening trade receivable Rs 64,000 closing trade receivable Rs 56000
Option 3: Opening trade receivable Rs 24000 closing trade receivable Rs 32000
Option 4: None of the above
Correct Answer: Opening trade receivable Rs 56,000 closing trade receivable Rs 64,000
Solution : Answer = Opening trade receivable Rs 56,000 closing trade receivable Rs 64,000 Trade receivable turnover ratio=$\frac{Net credit sales}{Average trades receivable}$ ⇒ 9 times= $\frac{5,40,000}{Average trade receivables}$ ⇒ Average trade receivables=$\frac{5,40,000}{9}$ ⇒ Average trade receivables= 60,000. Let op. trade receivable=X Closing trade receivable=X+8000 Average trade receivable=$\frac{X+X+8000}{2}$ ⇒ 60,000=$\frac{X+X+8000}{2}$ ⇒ 2X+8000=1,20,000 ⇒ X=1,20,000/2= 56,000. Opening trade receivables= Rs 56,000 Closing trade receivables = 56,000+8,000= Rs 64,000. Hence, the correct option is 1.
Question : A firm made credit Revenue from Operations (Credit Sales) of Rs.5,40,000 during the year. If the trade receivables turnover ratio is 9 times, The value of opening and closing trade Receivables, if the closing trade receivables are more by Rs.8,000 than the opening trade
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
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 ………
Question : Revenue from Operations (Sales) Rs. 16,00,000; Average Inventory Rs.2,20,000; Gross Loss Ratio 5%. Inventory turnover ratio will be
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