A Trader carries an Average Inventory of 1,00,000. His Inventory Turnover Ratio is 8 Times. He sells
goods at a profit of 25%

By Remi

A Trader carries an Average Inventory of 1,00,000. His Inventory Turnover Ratio is 8 Times. He sells
goods at a profit of 25% of cost. Calculate Gross Profit Ratio.

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Remi

1 thought on “A Trader carries an Average Inventory of 1,00,000. His Inventory Turnover Ratio is 8 Times. He sells<br />goods at a profit of 25%”

  1. Answer:

    answer is 40000

    Step-by-step explanation:

    Inventory Turnover Ratio

    <br>

    <br>

    Cost of Revenue from operations

    <br> = Rs. 3,20,000 <br> Revenue from operations = Cost of Revenue from operations

    <br> = Rs.

    = 4,00,000 <br> Gross Profit = Revenue from operations – Cost of Revenue from operations <br> Rs. 4,00,000-Rs. 3,20,000=Rs. 80,000

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