On the basis of following information, answer the questions:

On the basis of above case, the inventory turnover ratio is:

5 times

The correct answer is option 4- 5 times.

Inventory turnover ratio = Cost of revenue from operations/ average inventory
                                       = 5,00,000/1,00,000
                                       = 5 times

* When average inventory cannot be calculated then inventory will be assumed as average inventory.