Based on the following information of a company as at 31 March, 2017, answer the question.
|
Items |
Rs. |
|
Inventory |
1,00,000 |
|
Total Current Assets |
1,60,000 |
|
Shareholders’ Funds |
4,00,000 |
|
13% Debentures |
3,00,000 |
|
Current liabilities |
1,00,000 |
|
Net Profit before Tax |
3,51,000 |
|
Cost of Revenue from operations |
5,00,000 |
The Inventory Turnover Ratio will be:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 5 times
Inventory Turnover Ratio = Cost of Revenue from Operations ÷ Average Inventory
Only one inventory figure is given, so it is taken as the average inventory.
Inventory Turnover Ratio = ₹5,00,000 ÷ ₹1,00,000
= 5 times
NCERT (2026-27 edition):
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