Stock Turnove Ratio = \(\frac {\textit{Cost of goods sold}}{\textit{Average stock}} \)
Or, 8 = \(\frac {\textit{Cost of goods sold}}{\textit{20,000}} \)
or, Cost of Goods Sold = 20,000 × 8
or, Cost of Goods Sold = 1,60,000
Let Sale Price be Rs. 100
Then Profit is Rs. 20
Hence, the Cost of Revenue from Operations = Rs. 100
Rs. 20 = Rs. 80
If the Cost of Revenue from Operations is Rs. 80, then Revenue from operations = 100
If the Cost of Revenue from Operations is Rs. 1, then Revenue from operations =
If the Cost of Goods Sold is 1,60,000 then Sales
= × 1,60,000
= 2,00,000
Profit = Revenue from Operations
=2,00,000 – 1,60,000 = Rs. 40,000