Question

The sales of a company is 9,00,000 and gross profit ratio is 10%. The stock at the beginning and
at the end of the year was 1,40,000 and 80,000 respectively. What is the inventory turnover
Ratio ?
(Ans. 7.4 Times]​

Answer 1

7.4 times is the correct.

Answer 2

Explanation:

distributed as free samples.

ANSWER:

Cost of Goods Sold = Opening Stock + Purchases + Closing Stock

= 40,000 + 3,20,000 − 1,20,000 = 2,40,000