01. Sir if GP margin is not given and only sales are given and we had to find inventory turnover ratio .? We will put sales figures in the formula.?
02. And where we should use COGS in the ratio chapter
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1. If gp margin is not given and there’s no way to calculate COGS, we can use sales. We just have to give a note that ‘cogs could have been used but since no information about it was available we used sales.’
2. You can use COGS for calculating Inventory turnover ratio, sales turnover ratio and total assets turnover ratio.
Mostly we use COGS in ITR only.
You can also use sales instead of COGS