Please provide me the ans. Of this
Dear Student
Inventory turnover ratio = COGS/ Average Inventory
6 = 300000/ Average Inventory
Average Inventory = 50000
Let closing inventory be x
opening inventory = x-10000
Average Inventory = (Opening inventory + Closing inventory) /2
50000 = (x -10000 +x)/2
50000 x 2 = 2x - 10000
100000 + 10000 = 2x
110000/2 = x
55000 = x = Closing inventory
55000 - 10000 = 45000 = opening inventory
Note: Here is printing mistake, I think as it should be "opening inventory"
Regards
Inventory turnover ratio = COGS/ Average Inventory
6 = 300000/ Average Inventory
Average Inventory = 50000
Let closing inventory be x
opening inventory = x-10000
Average Inventory = (Opening inventory + Closing inventory) /2
50000 = (x -10000 +x)/2
50000 x 2 = 2x - 10000
100000 + 10000 = 2x
110000/2 = x
55000 = x = Closing inventory
55000 - 10000 = 45000 = opening inventory
Note: Here is printing mistake, I think as it should be "opening inventory"
Regards