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inventory tirnover ratio 8 times revenue grom operation 5000000gross profit ratio 40% closing inventory os twice the oening inventory determine operating nd closing inventory |
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Answer» SALES = 50L GP Ratio = 40% which implies, COGS = 30L inventory TURNOVER ratio is = COGS/ avg inventory 8 = 30L/avg inventory avg inventory = 3,75,000 opening inventory = x closing inventory = 2x x+2x / 2 = 375000 on solving x = 250000 opening inventory = 250000 closing inventory = 500000 |
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