Given: Revenue from operations = $\text{Rs }4,00,000$, Average Inventory = $\text{Rs }55,000$, and Gross Profit Ratio = $10\%$. Calculate the Inventory Turnover Ratio.

Let us solve this step by step:Calculate the Gross Profit Amount:
$$\text{Gross Profit}=10\%\text{ of Revenue from Operations}$$
$$\text{Gross Profit}=4,00,000\times \frac{10}{100}=\text{Rs }40,000$$
Calculate the Cost of Revenue from Operations (Cost of Goods Sold - COGS):
$$\text{COGS}=\text{Revenue from Operations}-\text{Gross Profit}$$
$$\text{COGS}=4,00,000-40,000=\text{Rs }3,60,000$$
Calculate the Inventory Turnover Ratio:
$$\text{Inventory Turnover Ratio}=\frac{\text{Cost of Revenue from Operations}}{\text{Average Inventory}}$$
$$\text{Inventory Turnover Ratio}=\frac{3,60,000}{55,000}=\frac{360}{55}\approx 6.5454\text{ times}$$
Rounding to two decimal places gives $6.55\text{ Times}$.