SOLUTION
Average Inventory = Opening Inventory + Closing Inventory / 2
= 60,000 + 1,00,000 / 2
= 80,000
Inventory turnover ratio = Cost of goods sold / Average Stock
8 = Cost of goods sold / 80,000
Cost of goods sold = 8 × 80,000
Cost of goods sold = 6,40,000
Gross Profit = 25% on Cost
Gross profit = 6,40,000 × 25 / 100
= 1,60,000
Sales = Cost of Goods Sold + Gross Profit
= 6,40,000 + 1,60,000
= 8,00,000