Question 38 Chapter 4 of +2-B

Question 38 Chapter 4 of +2-B

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 year1,25,000
Inventory at the close of the year1,75,000

 

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

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

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