From the following information, calculate Inventory Turnover Ratio. Re

1.	From the following information, calculate Inventory Turnover Ratio. Revenue from Operations: Rs.4,00,000, Average Inventory : Rs. 55,000, The rate of Gross Loss on Revenue from Operations was 10%
Answer» Revenue from Operations = 4,00,000 Gross Loss = 10% of Rs.4,00,000 = Rs. 40,000 Cost of Revenue from Operations = Revenue from Operations + Gross Loss = Rs.4,00,000 + Rs. 40,000 = Rs. 4,40,000 Inventory Turnover Ratio = Cost of Goods Sold/ Average Inventory = Rs.4, 40,000 / Rs. 55,000 = 8 times.

From the following information, calculate Inventory Turnover Ratio. Revenue from Operations: Rs.4,00,000, Average Inventory : Rs. 55,000, The rate of Gross Loss on Revenue from Operations was 10%

Answer»

Revenue from Operations = 4,00,000

Gross Loss = 10% of Rs.4,00,000 = Rs. 40,000

Cost of Revenue from Operations = Revenue from Operations + Gross Loss

= Rs.4,00,000 + Rs. 40,000

= Rs. 4,40,000

Inventory Turnover Ratio = Cost of Goods Sold/ Average Inventory

= Rs.4, 40,000 / Rs. 55,000 = 8 times.

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From the following information, calculate Inventory Turnover Ratio. Revenue from Operations: Rs.4,00,000, Average Inventory : Rs. 55,000, The rate of Gross Loss on Revenue from Operations was 10%

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