Answer:
Inventory Turnover Ratio = 7.43 times
Explanation: Due to missing data following assumptions have been taken:
Assumptions: Sales Value: $600,000
Gross Profit: $80,000
Opening Inventory: $ 60,000
Closing Inventory: $80,000
Inventory Turnover Ratio = [tex]\frac{Cost\ Of\ Goods\ Sold}{Average\ Stock}[/tex]
Cost Of Goods Sold = Sales - Gross Profit = $600,000 - $80,000 = $520,000
Average Stock = [tex]\frac{OS +\ CS}{2}[/tex]
WHERE, OS = Opening Stock
CS= Closing Stock
Average Stock = $70,000
Inventory Turnover Ratio = [tex]\frac{520,000}{70,000}[/tex] = 7.43 times
