Question
Calculate the inventory turnover
ratio: For question 10 & 11 refer to the following information:Solution
Inventory turnover ratio = 11,76,000/30,000 Inventory turnover ratio = 39.2 Times Cost of goods sold = Net Sales (-) gross profit 1200000 (-) 2% X 1200000 1200000 (-) 24000 1176000 Net sales = Cash sales + Credit Sales (-) Return Inwards 800000 + 400000 (-) 0 1200000 
= 30000
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