que1: stock turnover ratio 5 times, cost of goods sold 18,99,000. calculate opening stock and closing stock if stock at the end is 2.5 times more than that in the beginning.?

que2: 1) 3,00,000 is the cost of goods soid.inventory turnover ratio 8 times; stock in the beginning is 2 times more than the stock at the end.calculate the value of opening and closing stock.?

2) a trader carries an average stock of 80,000. his stock turnover ratio is 12times.find out his profit;if he sells at a profit of 20%on sales?

que3: cash sales 20% of total sales, credit sales4,50,000, gross profit 25% on cost, opening stock 37,500; closing stock1,12,500?

que4: a ltd copmpany made credit sales of 4,00,000 during the financial period if the collection period is 36 days and year is assumed to be 360days, calculate the debtors turnover , average debtor?

(1) Inventory Turnover Ratio = 8 times

Cost of Goods Sold = 3,00,000

Opening Stock is 2 times more than Closing Stock

Lets Closing Stock be x, Opening Stock will be 2x

(2) (a) Stock Turnover Ratio = 12 times

Average Stock = 80,000

(3) Nothing has been mentioned in the question regarding which ratio is to be computed.

(4) Average Collection Period = 36 days

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Ans.1

Stock Turnover Ratio=5 times , Cost Of Goods Sold=1899000

Let Opening Stock be x

Then Closing Stock would be 2.5x(given)

Now  Stock Turnover Ratio=Cost of Goods Sold / Average Stock

Average Stock=Opening Stock + Closing Stock / 2

  =>  x + 2.5x / 2

Then               5=1899000 / 3.5x / 2

                      10=1899000 / 3.5x

                      35x=1899000 

  x=1899000 / 35

  x=54257.14

  Therefore  Opening Stock=Rs.54257.14

  Closing Stock=2.5 * 54257.14

  =Rs.135642.85

 

Ans.2  (1)  

Cost Of Goods Sold=300000 , Inventory Turnover Ratio=8

Let Closing Stock be x.

Then,Opening Stock would be 2x(given)

Now  Stock Turnover Ratio=Cost Of Goods Sold / Average Stock

Average Stock=Opening Stock + Closing Stock / 2

  = 2x + x / 2

  =3x / 2

Then  8 = 300000 / 3x / 2

  16 = 300000 / 3x

  16 = 100000 / x

  x = 100000 / 16

  x = 6250

Therefore  Opening Stock = 2x = 2 * 6250 = 12500

  Closing Stock = x = 6250

 

(2)

Stock Turnover Ratio = Cost Of Goods Sold / 2

  12   = Cost Of Goods Sold / 80000

  Cost Of Goods Sold =960000

                              Sales = Cost Of Goods Sold * 100 / 80

                              Sales = 960000 * 100 / 80

                              Sales = 1200000

                    Gross Profit = Sales - Cost Of Goods Sold

                                        = 1200000 - 960000

                                        =  240000

(3)

to justina

what is to be find out in ques.3?

       

 

 

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