Question

Determine the amount of Revenue from Operations from the following
particulars :-
Opening Inventory
40,000
Inventory Turnover Ratio
6 times
Gross Profit 20% of Revenue from Operations (Sales)
You are informed that closing inventory is two times in comparison to opening
inventory.​

Answer 1

Answer:

Revenue = 360,000

Explanation:

Opening Stock = 40,000

Closing Stock = 80,000 (40,000 *2)

Average Stock = 60,000 ((80,000 + 40,000)/2)

Inventory Turnover Ratio = 6

Turnover = 360,000 (60,000 *6)

Answer 2

Answer:

answer is

revenue from operations = Rupees 450000