Question

calculate gross profit ratio operating ratio and inventory turnover ratio from the following opening inventory 300000 closing inventory 420000 purchase 1400000 wages 370001 what 150000 administrative expenses 84000 sale in expensive 36000 revenue from operations 24 lakh​

Answer 1

Answer:

Turnover Ratio =Cost of Revenue from operationsAverage Inventroy=Rs300000Rs75000=4Times

Cost of Revenue from operations(Cost of Goods sold)

=opening Inventory +Purchases + Direct Expenses -closing Inventory

Closing Inventory =Opening Inventory+ Inventory+ Purchses -Cost of Revenue

From opertions (Cost of Goods sold)

=Rs 60000+Rs 330000-Rs 300000=Rs 90000

Average Inventory =Opening Inventory+Closing Inventroy2

=Rs60000+Rs900002=Rs75000