84 :- From the following information, calculate Inventory Turnover Ratio:
Revenue from Operations 16,00,000
Average Inventory 2,20,000
Gross Loss Ratio 5%
Solution :-
Gross Loss = 5% of Revenue from operations
= 5/100 x 16,00,000
= Rs 80,000
Gross Loss = Cost of Goods Sold – Revenue from Operations
80,000 = Cost of Goods Sold – 16,00,000
Cost of Goods Sold = Rs 16,80,000
Inventory Turnover Ratio = Cost of Goods Sold/Average Inventory
= 16,80,000/2,20,000
= 7.64 Times