Question

carnent Assets
Stock turnover =5 times
Sales (All credit) = Rs 400000
Rate of
gross profit = 25% on cost
current liabilities= Rs. 120000
Quick ratio = Rs.0.75.
closing stock is Rs. 10,000 more than the stock at
the beginning​

Answer 1

Step-by-step explanation:

Solution :

Current assets =Quick assets + inventory

=Rs 30000+Rs 66250 =Rs 96250

Gross profit =Rs300000×25100=Rs75000

Cost of revenue from operation (cost of goods sold )

=Revenue from operations-Gross profit

=Rs 30000-Rs 750000=Rs 225000

Inventroy Turnover Ratio=cost of Revenue from operation (cost of goods sold)Average inventory

Average inventroy=opening inventory +closing inventory2

Let the opening inventroy be x, closing inventory =x+Rs 20000

4=Rs225000x+x+Rs20002

4x+4x+Rs 80000=Rs 450000

x=Rs 46250 (opening inventory)

Closing inventroy =Rs 46250+Rs 20000=Rs 66250

Quick ratio =Quick AssetsCurrent Liabilities

0.75=Quick assetsRs40000

Quick assets =Rs 30000.