Opening Inventory Rs 40 000 Purchase Rs 4 00 000 Purchase Return Rs 12 000 what will be Inventory tu...........

General Accounting Principles Ratio analysis

Opening Inventory Rs 40,000; Purchase Rs 4,00,000; Purchase Return Rs 12,000, what will be Inventory turnover ratio if Closing Inventory is less than Opening Inventory by Rs 8,000Rs

9 Times

10.78 Times

11 Times

8.82 Times

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Explanation:

Opening Inventory Rs 40,000; Purchase Rs 4,00,000; Purchase Return Rs 12,000, what will be Inventory turnover ratio if Closing Inventory is less than Opening Inventory by Rs 8,000Rs

Closing Inventory is less than Opening Inventory by Rs 8,000Rs

closing inventory= Rs. 40,000 - Rs. 8,000 = Rs. 32,000

Average inventory = opening inventory - closing inventory / 2

= Rs. 40,000 + Rs. 32,000 / 2

= Rs. 36,000

inventory turnover ratio = opening inventory + purchases - purchase return- closing inventory

average inventory

= Rs 40,000 + Rs 4,00,000 - Rs 12,000 - Rs. 32,000

Rs. 36,000

= Rs.3,96,000

Rs. 36,000

= 11 times