CBSE 2024, Set 1

Question

From the given information, calculate : (a) Quick Ratio (b) Inventory Turnover Ratio
Current Assets: 4,00,000
Inventory: 1,00,000
Current Liabilities: 2,00,000
Net Profit Before Tax: 7,20,000
Revenue from Operations: 10,00,000
Gross Profit Ratio: 20%

Edvaya · Accepted Answer

The correct answer is Subjective. **(a) Quick Ratio:** Quick Assets = Current Assets - Inventory = $4,00,000 - 1,00,000 = ₹3,00,000$ Quick Ratio = Quick Assets / Current Liabilities = $3,00,000 / 2,00,000 = 1.5 : 1$ **(b) Inventory Turnover Ratio:** Cost of Revenue from Operations = Revenue from Operations - Gross Profit Gross Profit = 20% of 10,00,000 = ₹2,00,000 Cost of Revenue from Operations = $10,00,000 - 2,00,000 = ₹8,00,000$ Average Inventory = ₹1,00,000 (Taking given inventory as average) Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory = $8,00,000 / 1,00,000 = 8 	ext{ times}$.

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Accountancy > Financial Statements Analysis > Accounting Ratios

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