SOLUTION
Cost of Goods Sold = Opening Inventory + Purchases − Closing Inventory
5,00,000 = 1,00,000 + 5,50,000 − Closing Inventory
Closing Inventory = 1,50,000
| Average Stock | Opening Stock + Closing Stock / 2 = 1,00,000 + 1,50,000 / 2 = 1,25,000 |
| Inventory turnover ratio | Cost of goods sold / Average Inventory = 5,00,000 / 1,25,000 = 4 times |