Following is the statement of profit and loss of exe ltd , calcutate inventory tunover ratio

Explanation

Inventory turnover ratio
`=("Cost of revenue from operatin cos t of goods sold")/("average inventory")=(Rs 150000)/(3000) = 5Times`
Cost of Revenue from operations (cost of goods sold)
=purchases of stock in trade+change in inventory of
Stock in trade +direct Expenses
=Rs 120000+Rs 20000+ Rs 10000=Rs 150000
Direct Expenses are carriege inwards taken from note to accounts on other expenses
Average inventroy=`("opening inventory+closing inventroy")/(2)`
=`(Rs 40000+Rs 200000)/(2)=Rs 30000`