Following figures have been extracted from Shivalika Mills Ltd: Inventory in the beginning of the year ₹ 60,000.

Following figures have been extracted from Shivalika Mills Ltd:

Inventory in the beginning of the year ₹ 60,000.

Inventory at the end of the year ₹ 1,00,000.

Inventory Turnover Ratio 8 times.

Selling price 25% above cost.

Compute amount of Gross Profit and Revenue from Operations (Net Sales).

[Ans.: Gross Profit = ₹ 1,60,000; Revenue from Operations, i.e., Net Sales = ₹ 8,00,000.]