1.

Find Inventory Turnover Ratio : Op.Stock Rs.90000, Purchases Rs.270000 & Cl. Stock Rs. 110000​

Answer»

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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