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%

2 thoughts 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. Hii Bruh

   What ru doing ??

   ^_^

   Reply

2. Answer:

   Inventory Turnover Ratio

   Cost of Revenue from Operations

   —————————————————

   Average Inventory

   Cost of Revenue from Operations

   8 = ——————————————————-

   Rs 40,000

   Cost of Revenue from operations

   = 8 × Rs40,000

   .= 3,20,000

   Revenue from operations = Cost of Revenue from operations

   100

   × ——–

   80

   100

   Rs. 3,20,000 × ——–

   80

   = 4,00,000 Gross Profit = Revenue from operations – Cost of Revenue from operations

   Rs. 4,00,000-Rs. 3,20,000=Rs. 80,000

   please mark me brainliest☺

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