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%

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. [tex]\begin{gathered}{\Huge{\textsf{\textbf{\underline{\underline{\purple{Answer:}}}}}}}\end{gathered}[/tex]

   [tex]\implies[/tex]inventory turnover = cost of goods sold / average inventory

   8-cost of goods sold /40000

   cost of goods sold =320000

   profit of 20% on sales

   therefore profit of 25% on cost of goods sold

   therefore gross profit = 320000*25%

   = 80000.

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