Cash revenue from Operations ₹ 1,00,000; Credit Revenue from Operations ₹ 3,00,000. Gross profit 30% on Revenue from Operations; Inventory turnover Ratio = 2 times. If the opening Inventory is 75% of Closing Inventory and Closing Inventory is 30% of Revenue from Operations
1. Calculate the cost of Revenue from Operations?
i) ₹ 3,00,000
ii) ₹ 1,20,000
iii) ₹ 4,00,000
iv) ₹ 2,80,000
2. Find Average Inventory?
i) ₹ 2,00,000
ii) ₹ 60,000
iii) ₹ 1,05,000
iv) ₹ 1,50,000
3. What is effect of increase in value of closing inventory by ₹ 20,000, If the inventory turnover ratio is three times?
i) Increase
ii) Decrease
iii) Neither increase nor decrease
iv) May or may not increase
4. Find the opening inventory and closing inventory if opening inventory is 75% of closing inventory and closing inventory is 30% of revenue from operations.
i) ₹ 90,000 & ₹ 1,20,000
ii) ₹ 1,20,000 & ₹ 90,000
iii) ₹ 3,00,000 & ₹ 1,00,000
iv) ₹ 1,00,000 & ₹ 2,00,000
