Answer:
Revenue from Operations \[\text{=}\,\,\text{Cost}\,\,\text{of}\,\,\text{Revenue}\,\,\text{from}\,\,\text{Operations}\,\times \,\frac{100}{100-\text{Gross}\,\text{Profit}\,\text{Ratio}}\] \[=\,10,00,000\,\times \,\frac{100}{100-20}\,=\,Rs.\,12,50,000\] Let Credit Revenue from Operations be Rs. x. \[\therefore \,\,\text{Cash}\,\text{Revenue}\,\text{From}\,\text{Operations}\,\text{is}\,\,Rs.\,\frac{x}{4}\]. Total Revenue from Operations \[=\,x\,+\,\frac{x}{4}\] \[i.e.\,\,x\,+\,\frac{x}{4}\,=\,12,50,000\,\Rightarrow \,\frac{5x}{4}\,=\,12,50,000\,\Rightarrow \,x\,=\,Rs.\,10,00,000\] Trade Receivable Turnover Ratio \[=\frac{\text{Credit}\,\text{Revenue}\,\text{from}\,\text{Operations}}{\text{Average}\,\text{Trade}\,\text{Receivables}}\] \[5\,=\,\frac{\text{Rs}\text{.}\,\text{10,00,000}}{\text{Average}\,\text{Trade}\,\text{Receivables}}\] \[\therefore \] Average Trade Receivable = Rs. 2,00,000 Let Closing Trade Receivables = Rs. y \[\therefore \] Opening Trade Receivables\[=\,Rs.\,\frac{y}{3}\] Average Trade Receivables \[=\,\frac{1}{2}\,\left( y\,+\,\frac{y}{3} \right)\] \[i.e.\,\frac{4y}{3}\,\times \,\frac{1}{2}\,=\,2,00,000\] y \[=\,2,00,000\,\times \frac{6}{4}\,=\,Rs.\,3,00,000\] So, Opening Trade Receivables = Rs. 1,00,000 And Closing Trade Receivables = Rs. 3,00,000
You need to login to perform this action.
You will be redirected in
3 sec