On the basis of following data the cost of revenue from operations by a company will be Opening Inve...........

General Accounting Principles Ratio analysis

On the basis of following data, the cost of revenue from operations by a company will be :

Opening Inventory Rs 70,000; Closing Inventory Rs Rs 80,000; Inventory Turnover Ratio 6 Times.

Rs 1,50,000

Rs 90,000

Rs 4,50,000

Rs 4,80,000

Opening Inventory Rs 70,000; Closing Inventory Rs Rs 80,000; Inventory Turnover Ratio 6 Times.

average inventory= opening inventory + closing inventory / 2

= Rs. 70,000+ Rs. 80,000/2

= Rs. 75,000

inventory turnover ratio= cost of revenue from operations = 6 times

average inventory

= cost of revenue from operations = 6 times

Rs.75,000

cost of revenue from operations= Rs.75,000 * 6 = Rs. 4,50,000

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