Question 110 Chapter 4 of +2-B – USHA Publication 12 Class

Question 110 Chapter 4 of +2-B

Question 110 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

110. (Operating Ratio/Inventory T/O Ratio) From the following information calculate
(a) Operating Ratio (b) Inventory Turnover Ratio

  
Opening Inventory5,00,000Interest Charges1,80,000
Fixed Assets5,25,000Current liabilities 6,00,000
Cost of goods sold (i.e. Cost of Revenue from Operation)18,00,000Current Assets9,75,000
Net Sales (Revenue from Operation)30,00,000Closing Inventory 7,00,000
Operating Expenses 4,80,000  

 

The solution of Question 110 Chapter 4 of +2-B: – 

 

(a) Operating Ratio=Operating CostX100
Net Sales
     
 =₹ 22,80,000X100
 ₹ 30,00,000
 =

76%

  
(b) Inventory Turnover Ratio=Cost of goods sold
Average Inventory
   
 =₹ 18,00,000
 ₹ 6,00,000
 =3 times


Working Notes :

Operating Cost=Cost of goods sold + Operating Expenses
 =₹ 18,00,000 – ₹ 4,80,000
 =₹ 22,80,000
Average Inventory=Opening Inventory + Closing Inventory
2
   
 =₹ 5,00,000 + ₹ 7,00,000
 2
 =₹ 6,00,000



Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 110 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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