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Inventory Turnover Ratio is :...

Inventory Turnover Ratio is :

A

Average Inventory/Revenue from Operations

B

Average Inventory/Cost of Revenue from Operations

C

Cost of Revenue from Operations/Average Inventory

D

G.P./Average Inventory

Text Solution

Verified by Experts

The correct Answer is:
C
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Calculate Inventory Turnover Ratio if: Inventory in the beginning is Rs. 76,250, Inventory at the end is 98,500, Gross Revenue from Operations is Rs. 5,20,000, Sales Return is Rs. 20,000, Purchases is Rs. 3,22,250.

From the following information calculate: (i) Gross profit ratio, (ii) Inventory Turnover Ratio, (iii) Current Ratio, (iv) Net Profit Ratio, and (v) Woking capital Turnover Ratio.

Knowledge Check

  • Revenue from Operations Rs. 8,00,000, Gross profit Ratio 25% , Opening Inventory Rs. 1,00,000, Closing Inventory Rs. 60,000. Inventory Turnover Ratio will be:

    A
    10 Times
    B
    7.5 Times
    C
    8 Times
    D
    12.5 Times

  • Cost of revenue from operations Rs. 6,00,000, Inventory Turnover Ratio 5, Find out the value of opening inventory, if opening inventory is Rs. 8,000 less than the closing inventory.

    A
    Rs. 1,12,000
    B
    Rs. 1,16,000
    C
    Rs. 1,28,000
    D
    Rs. 1,24,000

  • On the basis of following data, the cost of revenue from operations by a company will be: Opening Inventory Rs. 70,000, Closing Inventory Rs. 80,000, Inventory Turnover Ratio 6 Times.

    A
    Rs. 1,50,000
    B
    Rs. 90,000
    C
    Rs. 4,50,000
    D
    Rs. 4,80,000

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    From the following information calcualate Inventory Turnover Ratio:, Rs Revenue from operation , 500000 Inventory: Opening , 75000 Inventorey: opening , 125000 closing

    From the following information obtained from the books of Kundan Ltd., calculate the Inventory Turnover Ratio for the years 2015-16 and 2016-17: In the year 2015-16, inventory increased by Rs. 2,00,000.

    Inventory Turnover Ratio of a company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of increase in the Value of closing stock by Rs. 5,000.

    The two basic measures of operational efficiency of a company are a) Inventory Turnover Ratio and Working Capital Turnover Ratio b) Liquid Ratio and Operating Ratio c) Liquid Ratio and Current Ratio d) Gross Profit Margin and Net Profit Margin

    Opening Inventory Rs. 75,000, Closing Inventory Rs. 1,05,000, Inventory Turnover Ratio 6, Gross Profit 20% on cost, what will be Gross Profit?

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