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From the Following Information, Calculate Inventory Turnover Ratio: - Accountancy

Sum

From the following information, calculate Inventory Turnover Ratio:

 
Revenue from Operations 16,00,000
Average Inventory 2,20,000
Gross Loss Ratio 5%  
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Solution

Cost of Revenue from Operations=Revenue from Operations+Gross Loss                                                    

=16,00,000 + 80,000 = Rs 16,80,000 

 Inventory Turnover Ratio

= `"Cost of Revenue from Operations"/"Average Inventory" = 1680000/220000 = 7.64` times

  Is there an error in this question or solution?
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APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 3 Accounting Ratios
Exercise | Q 65 | Page 99
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