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Cost of revenue from operations 720000inventory turnover ratio 4 timesfind out the value of opening inventory and closing inventory if closing inventory is 80% of opening inventory​

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334 cents Dorgas
Answer:

Inventory Turnover Ratio =

cost of Revenue from opertions(cost of Goods Sold)

Rs200000

8

Average Inventory

Average Inventroy

Average Inventory=Rs 25000

Average Inventory=

opening Inventory + Closing Inventory

2

Let the closing Inventory be x, So, opening Inventroy

=x+1.5 x

X + x + 1.5x

2

Hence,

-=Rs 25000

3.5x =Rs 50000

Rs50000

3.5

X =

=

Rs14286(Closing Inventory)

Thus Opening Inventory=Rs 14286 +1.5 Times of Rs

14286

Rs35715(i. e, Rs14286 × 2.5)

290
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