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Calculate Inventory Turnover Ratio if: Inventory in the beginning is Rs. 76,250, Inventory at the end is 98,500, Gross Revenue from Operations is Rs. 5,20,000, Sales Return is Rs. 20,000 Purchases is Rs. 3,22,250.

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Gross Profit Ratio = \frac { 4,00,000 }{ 10,00,000 } × 100 = 40%

Cost of Goods Sold = Opening Inventory + Purchases – Closing Inventory

= 76,250 + 3,22,250 – 98,500 = 3,00,000

Average Stock = (Opening inventory + Closing inventory/2)

Stock Turunover Ratio = \frac { 3,00,000 }{ 87,375 } 

= 3,43 times

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