Steel Scrap Trader sells its product at a gross margin of 25% on sales. Its annual sales
Question:
Steel Scrap Trader sells its product at a gross margin of 25% on sales. Its annual sales are estimated to be ₹ 360 million. The inventory turnover ratio for the business is 4 times whereas the receivable turnover ratio is 3 times. Using this information, estimate the amount of inventory in hand and trade receivable outstanding at the end of the year.
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To estimate the inventory and trade receivables well need to use the given gross margin sales figure...View the full answer
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