What will be the inventory turnover ratio if sales are ₹16,00,000, average inventory is ₹2,20,000 and the gross loss ratio is 10%?

8 times

The correct answer is option 3- 8 times.

* Cost of revenue from operations =  Revenue from operations + gross loss
                                                       = 16,00,000 + 1,60,000
                                                       = ₹17,60,000

*Gross loss = Sales X percentage
                   = 16,00,000 x 10/100
                   = 1,60,000 

Inventory Turnover Ratio = Cost of Revenue from Operations/ Average Inventory
                                           = 17,60,000/2,20,000
                                           = 8 times