1.

You are able to collect the following information about a company for two years: 2015-16 2016-17 Book Debts on Apr. 01 Rs 4,00,000 Rs 5,00,000 Book Debts on Mar. 31 Rs 5,60,000 Stock in trade on Mar. 31 Rs 6,00,000 Rs 9,00,000 Revenue from Operations (at gross profit of 25%) Rs 3,00,000 Rs 24,00,000 Calculate Inventory Turnover Ratio and Trade Receivables Turnover Ratio if in the year 2015-16 stock in trade increased by Rs 2,00,000.

Answer»

You are able to collect the following information about a company for two years:
















































2015-16





2016-17



Book Debts on Apr. 01



Rs



4,00,000



Rs



5,00,000



Book Debts on Mar. 31







Rs



5,60,000



Stock in trade on Mar. 31



Rs



6,00,000



Rs



9,00,000



Revenue from Operations (at gross profit of 25%)



Rs



3,00,000



Rs



24,00,000






Calculate Inventory Turnover Ratio and Trade Receivables Turnover Ratio if in the year 2015-16 stock in trade increased by Rs 2,00,000.








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