Question 70 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 70 Chapter 4 of +2-B

Table of Contents

Interest Coverage Ratio

70. Calculate Inventory Turnover Ratio from the data given below:

	Rs.		Rs.
Inventory at the beginning of the year	20,000	Carriage Inwards	5,000
Inventory at the end of the year	10,000	Revenue from Operations, i.e., Sales	1,00,000
Purchases	50,000

State the significance of this ratio.

Cost of Goods of Goods Sold	=	Opening Stock +Purchases – Closing Stock
	=	Rs. 20,000 + Rs. 50,000 + Rs. 5,000 − Rs.10,000
	=	Rs. 65,000

Average Inventory	=	Opening Inventory + Closing Inventory
		2

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

Balance Sheet: Meaning, Format & Examples

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

Chapter No. 1 – Financial Statements of a Company
Chapter No. 2 – Financial Statement Analysis
Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
Chapter No. 4 – Accounting Ratios
Chapter No. 5 – Cash Flow Statement

Question 70 Chapter 4 of +2-B – T.S. Grewal 12 Class