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12th | Accounting Ratios | Question No. 66 To 70 | Ts Grewal Solution 2022-2023

Question 66:


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.

Answer:


Cost of Goods Sold = Opening Inventory + Purchases − Closing Inventory

5,00,000 = 1,00,000 + 5,50,000 − Closing Inventory

Closing Inventory = 1,50,000

Average Stock

= Opening Stock + Closing Stock/2

=1,00,000+1,50,000/2

= 1,25,000

Inventory tunover ratio

= Cost of goods sold / Average Inventory

=5,00,000/1,25,000

=4 times

 

Question 67:


Calculate Inventory Turnover Ratio from the following information:
Opening Inventory is 
`50,000; Purchases  `3,90,000; Revenue from Operations, i.e., Net Sales  `6,00,000; Gross Profit Ratio 30%.

Answer:


Cost of Goods Sold = Net Sales – Gross Profit
                               =
 ` 6,00,000 – 30% of  ` 6,00,000
                               =
 ` 6,00,000 –  ` 1,80,000 =  ` 4,20,000

Cost of Goods Sold = Opening Inventory + Purchases – Closing Inventory
 
 ` 4,20,000  =  ` 50,000 +  ` 3,90,000 – Closing Inventory
Closing Inventory = 
 ` 50,000 +  ` 3,90,000 –  ` 4,20,000
                              =
 ` 20,000


Average Stock

 

= Opening Stock + Closing Stock/2

=50,000+20,000/2=35,000

 

 

Stock turnover ratio

= Cost of Goods sold / Average Stock

 

=4,20,000/35,000

 

=12 Times

 

Question 68


From the following information, calculate Inventory Turnover Ratio:

Opening Inventory

` 2,00,000

Closing Inventory

` 60,000

Purchases

` 4,60,000

Wages

` 30,000

Carriage Inwards

` 20,000

Freight Outwards

` 37,500

 

Answers:


Inventory turnover ratio= Cost of revenue from operation/ average inventory

Inventory turnover ratio= 6,50,000 / 1,30,000 = 5 Times

Cost of revenue from operations

( cost of goods sold)

= opening inventory + purchases + carriage inward + wages - closing inventory

 

= 2,00,000 + 4,60,000 + 20,000 + 30,000-60,000

 

= 6,50,000

 

Average inventory

= opening inventory + closing inventory / 2

 

= 2,00,000 + 60,000 / 2

 

= 2,60,000 / 2

 

= 1,30,000

 

 Question 69:


:

Calculate Inventory Turnover Ratio from the following:

 

 `

Opening Inventory

58,000

Closing Inventory

62,000

Revenue from Operations, i.e., Sales

6,40,000

Gross Profit Ratio 25%

Answer:


Sales = 6,40,000

Gross Profit = 25% on Sales

 

Gross profit=6,40,000×25/100=1,60,000

Cost of Goods Sold = Total Sales − Gross Profit

Cost of Goods Sold = 6,40,000 – 1,60,000

Cost of Goods Sold = 4,80,000

 

Average Inventory

 

= Opening Inventory + Closing Inventory /2

=58,000+62,000/2=60,000

 

 

Inventory turnover ratio

= Cost of Goods sold / Average Inventory

 

=4,80,000/60,000

 

=8 Times

Question 70:


From the following information, calculate Inventory Turnover Ratio:

 

 `

Revenue from Operations

16,00,000

Average Inventory

2,20,000

Gross Loss Ratio 5%

 

Answer:


Cost of Revenue from Operations

=  Revenue from Operation+Gross Loss 

=  16,00,000+80,000

=   ` 16,80,000

Inventory Turnover Ratio

= Cost of Revenue from Operations/Average Inventory

= 16,80,000/2,20,000

= 7.64 Times

 

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