Question

Inventory Turnover Ratio = `(₹ 5,40,000)/((₹ 70,000 + ?)/2)` = 6 Times

Answer 1

Inventory Turnover Ratio = `(₹ 5,40,000)/((₹ 70,000 + bbx)/2)` = 6 Times

Explanation:

₹ 5,40,000 × 2 = ₹ 4,20,000 + 6x

6x = ₹ 10,80,000 − ₹ 4,20,000

x(Closing Inventory) = `(₹ 6,60,000)/6`

= ₹ 1,10,000