Question

    A firm’s net sales are ₹5 crore, and cost of goods

    sold is ₹3.5 crore. Inventory at the start of the year was ₹80 lakhs and at the end ₹1.2 crore. Calculate the Inventory Turnover Ratio.
    A 3 times Correct Answer Incorrect Answer
    B 4.2 times Correct Answer Incorrect Answer
    C 3.5 times Correct Answer Incorrect Answer
    D 2.5 times Correct Answer Incorrect Answer

    Solution

    ITR = COGS / Avg Inventory = ₹3.5 Cr / ₹1 Cr = 3.5 times

    Practice Next