(a) Inventory Turnover Ratio = Cost Of Goods Sold / Average Inventory
Where, Cost of Goods Sold = opening stock + purchases – closing stock
= 23,500 + 2,23,000 – 21,500 = Rs.2,25,000
And Average Inventory = (Opening stock + closing stock) / 2
= (23,500 + 21,500) /2 = Rs. 22,500
Inventory Turnover Ratio = (Rs.2,25,000 / Rs. 22,500)
= 10 times
(b) Accounts Receivable Turnover Ratio = Credit Sales / Average Accounts Receivable
= (8,21,250 / 1,57,500)
= 5.214
(c) Collection Period = Days in a year / Debtors’ turnover ratio
= (365 / 5.124)
= 71.23 days
= 72 days approx.