(i) Calculate Revenue from operations of BN Ltd.’ from the following information:

Current Assets     8,00,000

Quick ratio     1.5 : 1

Current ratio     2 : 1

Inventory turnover ratio    6 times

Goods were sold at a profit of 25% on cost.

(ii) The operating ratio of a company is 60%.  State whether purchase of goods costing 20,000 will increase, decrease or not change the operating ratio.

Marks-4, CBSE:2022-23/Zone-2/Set-1/Q-33*

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