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    Question

    A firm has Cost of Goods Sold = ₹36,00,000 and Closing

    Inventory = ₹6,00,000. What is the Inventory Turnover Ratio, if opening and closing stock are equal?
    A 4 times Correct Answer Incorrect Answer
    B 5 times Correct Answer Incorrect Answer
    C 6 times Correct Answer Incorrect Answer
    D 7 times Correct Answer Incorrect Answer
    E 3 times Correct Answer Incorrect Answer

    Solution

    Average Inventory = ₹6,00,000 Inventory Turnover Ratio = COGS / Avg Inventory = ₹36,00,000 / ₹6,00,000 = 6 times

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