Start learning 50% faster. Sign in now
The Inventory Turnover Ratio is calculated using the formula: Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory Calculation of Cost of Revenue from Operations: If Gross Profit is 25% on Cost, then for every ₹125 of Revenue, the Cost of Revenue is ₹100. Given Revenue from Operations = ₹2,00,000 (₹50,000 Cash + ₹1,50,000 Credit), the Cost of Revenue = ₹1,60,000. Calculation of Opening Inventory: Opening Inventory = 10% of Cost of Revenue = ₹1,60,000 × 10% = ₹16,000 Calculation of Closing Inventory: Closing Inventory = 3 × Opening Inventory = 3 × ₹16,000 = ₹48,000 Average Inventory: Average Inventory = (Opening Inventory + Closing Inventory) / 2 = (₹16,000 + ₹48,000) / 2 = ₹32,000 Inventory Turnover Ratio = ₹1,60,000 / ₹32,000 = 5 times
Which Country Recorded the world's 1st human death from H3N8 bird flu?
In which year the Narayan Ashram was established in Dharchula?
What is the importance of developing Chabahar Port by India?
The Article states that the Parliament can make laws on items in the State List if the Rajya Sabha passes a resolution by ⅔ majority of its members pr...
Who has been appointed as the next Chief of the Army Staff, succeeding General Manoj Pande?
Consider the following statements about State Food Safety Index:
1. Recently, Ministry of Commerce published the State Food Safety Index
Who is the author of the recently released book “Indomitable: A Working Woman’s Notes on Life, Work and Leadership”?
Bank of India raised Rs 2,000 crore in capital through Basel III-compliant Tier-II bonds. What is the maturity period of these bonds, which have a 'AA+'...
Who was appointed as the Director General of the National Security Guard (NSG) in August 2024?
Which of the statements is/are correct regarding Watermeal:
It is a free-floating rootless aquatic plant....