Question
A firm reports the following: Sales = ₹40,00,000; Cost
of Goods Sold = ₹28,00,000; Inventory = ₹7,00,000. What is the Inventory Turnover Ratio?Solution
Inventory Turnover = COGS / Inventory = ₹28,00,000 / ₹7,00,000 = 4 times
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