Opening Inventory ₹ 80,000; Purchases ₹ 4,30,900; Direct Expenses ₹ 4,000; Closing Inventory ₹ 1,60,000; Administrative Expenses ₹ 21,100

Opening Inventory ₹ 80,000; Purchases ₹ 4,30,900; Direct Expenses ₹ 4,000; Closing Inventory ₹ 1,60,000; Administrative Expenses ₹ 21,100; Selling and Distribution Expenses ₹ 40,000; Revenue from Operations, i.e., Net Sales ₹ 10,00,000. Calculate Inventory Turnover Ratio; Gross Profit Ratio; and Operating Ratio.

[Ans.: (i) Inventory Turnover Ratio = 2.96 Times; (ii) Gross Profit RAtio = 64.51%; (iii) Operating Ratio = 41.6%.]