Home › Bihar Board Class 12 (Commerce) › Accountancy › Analysis of Financial Statements: Tools and Accounting Ratios › Revenue Rs. 5,00,000, gross profit Rs. 1,00,000,…
Revenue Rs. 5,00,000, gross profit Rs. 1,00,000, average inventory Rs. 80,000. What is inventory turnover?
A1.25 times
B4 times
C5 times
D6.25 times
Answer & Solution
Correct answer: C. 5 times
Cost of revenue is 5,00,000 less 1,00,000, which is 4,00,000, and dividing by 80,000 gives 5.
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