1.

You are able to collect the following information about a company for two years: 2015-16 2016-17 Trade receivables on Apr. 01 Rs. 4,00,000 Rs 5,00,000 Trade receivables 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.

Answer»

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















































2015-16




2016-17


Trade receivables on Apr. 01


Rs.


4,00,000


Rs


5,00,000


Trade receivables 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.



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