Question 38 Chapter 4 of +2-B
Table of Contents
III. Activity Ratios
Inventory Turnover Ratio
38. (Inventory T/O Ratio) From the following details, calculate the stock turnover ratio
| Cost of goods sold (i.e. Cost of Revenue from Operation) | 4,50,000 |
| Inventory at the beginning of the year | 1,25,000 |
| Inventory at the close of the year | 1,75,000 |
The solution of Question 38 Chapter 4 of +2-B: –
| Inventory Turnover Ratio | = | Cost of goods sold |
| Average Inventory |
| Cost of goods sold | = | Net Total Sales – Gross profit |
| = | ₹ 4,50,000 |
| Debt Equity Ratio | = | Opening Inventory – Closing Inventory |
| 2 | ||
| = | ₹ 1,25,000 + ₹ 1,75,000 | |
| 2 | ||
| = | ₹ 1,50,000 |
| Inventory Turnover Ratio | = | ₹ 4,50,000 |
| ₹ 1,50,000 | ||
| = | 3 Times |
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
