how to solve this problem turnover
ratios given in times gp 100000 gpr 25perc.reserves and surplus 35000 cl. stock is more by RS.20000 than op.stock.
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ratio analysis
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Inventory turnover ratio ??
nothing given
times,CRS t/o 8 time, capital t/o 2 time, stock t/o 8 time, fa t/o 8 time.
drs t/o 4 time
how to prepare b/s with this information
Ok I will try wait..
thanks
Fixed Assets -50,000
Debtors--100,000
Creditor--40000
Closing stock--47500
Is there any information regarding cash etc, once check capital turnover ratio
Debtors--100,000
Creditor--40000
Closing stock--47500
Is there any information regarding cash etc, once check capital turnover ratio
capital t o 2 time
thanks but how you do it please let me inform
B/s will tally but capital will not tally with that capital ratio
it's as per question paper
let me send the working please
Sales=G.P/G.P%
=100,000/25%=400,000.
COGS=SALES-G.P
= 400,000-100,000=300,00.
STOCK T/O Ratio=COGS/Avg.stock
Average stock = 300,000/8=37500
(Op.stock+ clo.stock)/2=37500
Op.stock+clo.stock =75000.
Let Op.stock= x
Clo.stock=x+20,000
x+x+20,000=75000
2x=75000-20,000
x=27500
Op.stock=27500
Clothes.stock =27500+20,000=47500.
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