Question

Calculate from following information gross profit ratio stock turnover ratio and debtors turnover ratio revenue from operation 300000 cost of revenue from operation 240000 closing stock 62000 gross profit 60000 opening stock 58000 trade receivables 32000 answer this

Answer 1

Answer:

Gross Profit Ratio = 20%

Stock Turnover Ratio = 4 times

Debtors Turnover Ratio = 9.3 times

Explanation:

Gross Profit Ratio = $\frac{Gross profit}{Revenue}$ X 100

= $\frac{60,000}{3,00,000}$ X 100

= 20%

Stock Turnover Ratio = $\frac{Cost of revenue}{Average stock}$

= $\frac{2,40,000}{60,000}$

= 4 times

Debtors Turnover Ratio = $\frac{Revenue}{Receivables}$

= $\frac{3,00,000}{32,000}$

= 9.3 times