79 :- From the following details, calculate Inventory Turnover Ratio:
Cost of Revenue from Operations Rs 9,00,000
Inventory in the beginning of the year Rs 3,50,000
Inventory at the close of the year Rs 2,50,000
Solution :-
Average Inventory = Opening Inventory + Closing Inventory/2
= 3,50,000 + 2,50,000/2
= 6,00,000/2
= Rs 3,00,000
Inventory Turnover Ratio = Cost of Revenue from Operations (Cost of Goods Sold)/Average Inventory
= 9,00,000/3,00,000
= 3 Times