CALCULATE GP RATIO.

OPENING STOCK=60,000

CLOSING STOCK=1,00,000

STOR=8 TIMES

SELLING PRICE 25% ABOVE COST.

G.P. R. =  G.P. / NET SALES * 100

S.T.R. = COGS / AVG. STOCK 

8 = COGS / 80,000

COGS = 6,40,000

 THUS, G.P. = 25/ 100 * 6,40,000 = 1,60,000

NET SALES = COGS G.P. = 6,40,000 + 1,60,000 = 8,00,000

 THEREFORE, GROSS PROFIT RATIO = 6,40,000 / 8,00,000 *100 = 80%

 HOPE U'LL KNOW HOW TO CALCULATE AVG. STOCK AND U'LL UNDRSTAND.