Question 36 Chapter 4 of +2-B

Question 36 Chapter 4 of +2-B

II. Solvency (Long-Term) Ratio

36. (Inventory T/O Ratio/Sales & G.P. Rate given) Opening inventory 19,000 ; Closing inventory ₹ 21,000 ; Sales (Revenue from Operation) ₹ 2,00,000 ; Gross profit ratio on sales 25%. Calculate inventory turnover ratio.

 

The solution of Question 36 Chapter 4 of +2-B: – 

(i) Debt Equity Ratio=Cost of goods sold
Average Inventory
Total Long term Debt=Sales – Gross profit
 =₹ 2,00,000 – ₹ 50,000*
 =₹ 1,50,000
Debt Equity Ratio=Opening Inventory – Closing Inventory
2
   
 =₹ 19,000 – ₹ 21,000
 2
   
 =₹ 20,000

 

Inventory Turnover Ratio=₹ 1,50,000
₹ 20,000
   
 =7.5 Times

 

*Gross profit=25% of Sales
Sales=₹ 2,00,000
Gross profit=₹ 2,00,000 X25
100
     
 =₹ 50,000  

 

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 36 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-

close