The following information pertains to P Limited for the year ended 31st March, 2025 : Particulars Amount / Ratio Sales 3,60,00,000 Rate of Income…
CA Intermediate · Financial Management and Strategic Management · RTP · May 2026
The following information pertains to P Limited for the year ended 31st March, 2025 : Particulars Amount / Ratio Sales 3,60,00,000 Rate of Income Tax 40% Return on Net Worth 30% Share Capital to Reserves Ratio 6 : 4 Current Ratio 2 : 1 Percentage of Net Profit to Sales 8% Inventory Turnover (based on cost of goods sold) 12 Cost of goods sold 1,44,00,000 Sundry Debtors 12,00,000 Sundry Creditors 16,00,000 Interest on 14% debentures 3,36,000 You are required to CALCULATE: (iii) Closing Stock
Suggested Answer and Working Notes:
(iii) Closing Stock Inventory Turnover (based on cost of goods sold) = 12 Cost of goods sold = 1,44,00,000 Inventory Turnover Ratio = Cost of goods sold/Closing Stock = 12 12 = 1,44,00,000/Closing Stock Therefore, Closing Stock = 1,44,00,000/12 = 12,00,000
Topics: Part-A: Financial Management
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