# Question 63 Chapter 4 of +2-B – T.S. Grewal 12 Class Question No. 63- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 63 Chapter 4 of +2-B

Interest Coverage Ratio

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

### The solution of Question 63 Chapter 4 of +2-B: –

 Cost of Goods of Goods Sold = Net Sales – Gross Profit = Rs.6,00,000 – 30%(6,00,000) = Rs.6,00,000 – Rs. 1,80,000 = Rs.4,20,000 Cost of Goods of Goods Sold = Opening Inventory + Purchases – Closing Inventory Rs. 4,20,000 = Rs. 50,000 + 3,90,000 – Closing Inventory = Rs. 50,000 + Rs. 3,90,000 –Rs. 4,20,000 Closing Inventory = Rs. 20,000

 Average Stock = Opening Stock + Closing Stock 2

 Average Stock = Rs. 50,000 + Rs. 20,000 2 = Rs. 35,000

 Inventory Turnover Ratio = Cost of Goods of Goods Sold Average Stock

 Inventory Turnover Ratio = Rs. 4,20,000 Rs. 35,000 = 12 Times

Balance Sheet: Meaning, Format & Examples

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