Inventory Turnover Ratio = Cost of Revenue from Operations / ______________.

Average Trade Receivables

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Average Trade Payables

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Average Inventory

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Gross Profit

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Solution

The correct option is C Average Inventory
Inventory Turnover Ratio
= Cost of Revenue from Operations / Average Inventory

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Similar questions

Calculate Inventory Turnover Ratio from the following particulars :

Cost of Revenue from Operations (Cost of Goods Sold) Rs. 6,40,000

Gross Profit 20% on Sales

Closing Inventory : 4 times of Opening Inventory

Opening Inventory : 10% of Cost of Revenue from Operations.

From the following information calculate Gross Profit Ratio, Inventory Turnover Ratio and Trade Receivables Turnover Ratio.

	Rs
Revenue from Operations	3,00,000
Cost of Revenue from Operations	2,40,000
Inventory at the end	62,000
Gross Profit	60,000
Inventory in the beginning	58,000
Trade Receivables	32,000

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