| Particulars | Amount (Rs.) |
| Cost of Revenue from Operations (Cost of Goods Sold) | 4,50,000 |
| Inventory in the beginning of the year | 1,25,000 |
| Inventory at the close of the year | 1,75,000 |
SOLUTION
| Cost of Goods Sold | 4,50,000 |
| Average Stock | Opening Stock + Closing Stock / 2 = 1,25,000 + 1,75,000 / 2 = 1,50,000 |
| Inventory turnover ratio | Cost of goods sold / Average Stock |
| Inventory turnover ratio | =4,50,000 / 1,50,000 = 3 Times |