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Question
Inventory Turnover Ratio = `(₹ 5,40,000)/((₹ 70,000 + ?)/2)` = 6 Times
Fill in the Blanks
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Solution
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
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Chapter 4: Accounting Ratios - QUESTIONS [Page 4.110]
