Cost Of Goods Sold = Sales – ***** Profit
= 3,00,000 – 20% of profit
= Rs. 2,40,000
Stock Turnover Ratio = Cost Of Goods Sold / Avaerage Stock
6 = 2,40,000 / Average Stock
Average Stock = 2,40,000 / 6 = Rs. 40,000 …. (a)
Average Stock = (Opening Stock + Closing Stock) / 2
40,000 = {Opening Stock + (10,000 + Opening Stock)} / 2
Opening stock = Rs. 35,000
Closing stock = Rs. 45,000
Cost Of Goods Sold = Opening Stock + Purchases – Closing Stock
Purchases = Cost Of Goods Sold + Closing Stock – Opening Stock
= 2,40,000 + 45,000 – 35,000
Purchases = Rs. 2,50,000.........(b)
Creditors Turnover Ratio = Credit Purchases / Average Trade Creditors
Average Trade Creditors = (Opening Creditors + Closing Creditors) / 2
= (20,000 + 30,000) / 2
= Rs. 25,000
Assuming all purchases to be credit purchases
Creditors Turnover Ratio = 2,50,000 / 25,000
Creditors Turnover Ratio = 10 Times……(c)
Average Payment ** = 365 / Creditors Turnover Ratio
= 365 / 10
Average Payment ** = 36.5 days or 37 days (approx.)…....(d)
Debtors Turnover Ratio = Credit Sales / Average Trade Debtors
= 3,00,000 / 60,000 = 5 times
Average Collection ** = 365 / Debtors Turnover Ratio
= 365 / 5
Average Collection ** = 73 days……..(e)
Working Capital Turnover Ratio = Cost Of Goods Sold / Net Working Capital
= 2,40,000 / 50,000
Working Capital Turnover Ratio = 4.8 Times…….(f)
