Question

plzz help

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

Explanation:

The sweet spot for inventory turnover is between 2 and 4. A low inventory turnover may mean either a weak sales team performance or a decline in the popularity of your products. In most cases (read: not always), the higher the inventory turnover rate, the better your business goals are being met.