Q. 82 DK Goel Accounting Ratios Solutions Class 12 CBSE (2024-25)
the solutions of Question number 82 of Accounting Ratios chapter 5 of DK Goel Class 12 CBSE (2024-25)
Following figures have been obtained from the books of Pawan Roadways Ltd:-
| 2022 ₹ | 2023 ₹ | |
| Revenue from Operations (Sales) (at Gross Profit of 25%) | 36,00,000 | 60,00,000 |
| Trade Receivables on 1st January | 5,40,000 | |
| Trade Receivables on 31st December | 6,60,000 | 9,40,000 |
| Inventory on 1st January | 6,50,000 | |
| Inventory on 31st December | 7,00,000 | 10,00,000 |
Calculate the Trade Receivables Turnover Ratio. Also Calculate Inventory Turnover Ratio. Give necessary Comments.
[Ans. 2022: Trade Receivables Turnover Ratio 6 times; 2023 : Trade Receivables Turnover Ratio 7. 5 times;
Inventory Turnover Ratio in 2022 4 Times: in 2023 5.28 Times.]
Solution:-
Comments:- (1) in 2023, Trade Receivables Turnover Ratio has increased from 6 times t0 7.5 times. It indicates that amount from Trade Receivables is being collected more quickly.
(2) In 2023, Inventory Turnover Ratio has also increased. It indicates that inventory is being rotated into revenue from operations more quickly. As such, the sales policy of the management is quite efficient.
