From the following information, calculate inventory Turnover Ratio :

3 times

The correct answer is option (3) : 3 times.

COST OF REVENUE FROM OPERATIONS = Inventory in the beginning + Net Purchases + Wages + Carriage inwards – Inventory at the end

= 18,000 + 46,000 + 14,000 + 4,000 – 22,000
= 60,000

Average Inventory = (Inventory in the beginning + Inventory at the end)/2
                            = (18,000 + 22,000) / 2
                            = 40,000/2
                            = ₹20,000

Inventory Turnover Ratio = Cost of Revenue from Operations/Average Inventory
                                     = 60,000/20,000
                                     = 3 Times