Page 53 - AAAXII

Model Test Papers M.49

Current Assets
22. (a) Current Ratio = = 3 : 1 (Given)
Current Liabilities
Let Current Liabilities = x
then Current Assets = 3x
Current Assets – Current Liabilities = Working Capital
3x –x = ` 1,80,000
2x = ` 1,80,000

` 1,80,000
x = = ` 90,000 (Current Liabilities)
2
Current Assets = ` 90,000 × 3 = ` 2,70,000
Quick Ratio = 1.2 : 1

1.2 = Quick Assets .
1 Current Liabilities
Quick Assets = ` 90,000 × 1.2 = ` 1,08,000
So, Inventory (Stock) will be = Current Assets – Quick Assets
= ` 2,70,000 – ` 1,08,000 = ` 1,62,000.
(b) Revenue from Operations (Net Sales) = ` 4,00,000
Gross Profit = 25% of Cost
Let the Cost = ` 100
Gross Profit 25% of ` 100 = ` 25
Revenue from Operations = ` 100 + ` 25 = ` 125

` 100
Cost of Revenue from Operations = ¥ ` 4,00,000 = ` 3,20,000
` 125
Closing Inventory = 30% of Revenue from Operations
30
= ` 4,00,000 × = ` 1,20,000
100
1
Opening Inventory = rd of Closing Inventory
3

1
= ` 1,20,000 × = ` 40,000
3
Cost of Revenue from Operations
Inventory Turnover Ratio =
Average Inventory*
` 3,20,000
= = 4 Times.
` 80,000*
Opening Inventory + Closing Inventory
*Average Inventory =
2
` 40,000 + ` 1,20,000
= = ` 80,000.
2