| Particulars | Amount (Rs.) |
| Opening Inventory | 29,000 |
| Closing Inventory | 31,000 |
| Revenue from Operations, i.e., Sales | 3,20,000 |
Gross Profit Ratio 25%
SOLUTION
Sales = 3,20,000
Gross Profit = 25% on Sales
Gross profit = 3,20,000 × 25 / 100
= 80,000
Cost of Goods Sold = Total Sales − Gross Profit
= 3,20,000 − 80,000
= 2,40,000
| Average Inventory | Opening Inventory + Closing Inventory / 2 |
| = 29,000 + 31,000 / 2 = 30,000 |
| Inventory turnover ratio | Cost of Goods sold / Average Inventory |
| = 2,40,000 / 30,000 = 8 Times |