From the given information, calculate the inventory turnover ratio: Revenue from operations Rs 2,00,000; GP: 25% on cost; Opening inventory - Accountancy - Accounting Ratios

Question

From the given information, calculate the inventory turnover ratio:
Revenue from operations Rs 2,00,000; GP: 25% on cost; Opening
inventory was 1/3rd of the value of Closing Inventory Closing
Inventory was 30% of Revenue from Operations

Komal Rani · Accepted Answer

Inventory Turnover Ratio = 4 times

From the given information, calculate the inventory turnover ratio: Revenue from operations Rs.2,00,000; GP: 25% on cost; Opening inventory was 1/3rd of the value of Closing Inventory. Closing Inventory was 30% of Revenue from Operations.