SOLUTION
Inventory Turnover Ratio = 8 times
Average Inventory = 3,20,000
Cost of Goods sold = 25,60,000
Trade Receivables Turnover Ratio = 6 times
Average Trade Receivables = 4,00,000
Stock turnover ratio = Cost of Goods sold / Average Stock
8 Times = Cost of Goods sold / 3,20,000
Cost of Goods Sold = 3,20,000 × 8
= Rs. 25,60,000
Net Credit Sales = 24,00,000
Total Sales = Cash Sales + Credit Sales
Total Sales = 25% of Total Sales + Credit Sales
75% of Total Sales = 24,00,000
Trade Receivables Turnover Ratio = Net Credit Sales / Average Trade Receivables = 6 = Net Credit Sales / 4,00,000
Gross Profit = Total Sales – Cost of Goods Sold
= 32,00,000 – 25,60,000
= 6,40,000
Total Sales = Gross Profit × 100 / Net Sales
= 6,40,000 / 32,00,000 × 100
= 20%