Question : Revenue from Operations (Sales) Rs. 16,00,000; Average Inventory Rs.2,20,000; Gross Loss Ratio 5%. Inventory turnover ratio will be
Option 1: 7.63 times
Option 2: 7 times
Option 3: 7.4
Option 4: None of the above
Correct Answer: 7.63 times
Solution : Answer = 7.63 times
= 16,80,000/2,20,000
Cost of goods sold = Sales + G.loss
= 16,00,000 + 80,000
= 16,80,000
Hence, the correct option is 1.