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Find Inventory Turnover Ratio : Op.Stock Rs.90000, Purchases Rs.270000 & Cl. Stock Rs. 110000 |
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Answer» 2.5 times Explanation:
INVENTORY Turnover Ratio = ( cost of goods sold) / average stock = 250000 / 100000 = 2.5 times Where, Cost of goods sold = opening stock + purchases + direct EXPENSES - closing stock = 90000 + 270000 + 0 - 110000 = 250000
Average stock = (opening stock + closing stock) / 2 = (90000 + 110000) /2 = 200000 / 2 = 100000 Hope it will help. Thank you
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