Explanation:

GIVEN: Opening Inventory of a firm is Rs 80,000. Cost of revenue from operations is Rs 6,00,000. Inventory Turnover Ratio is 5 times

inventory turnover ratio = cost of revenue from operations/ average inventory

average inventory = opening inventory + closing inventory / 2

inventory turnover ratio  =      Rs. 6,00,000     = 5 times

                                           average inventory

LET CLOSING INVENTORY= X

         average inventory = opening inventory + closing inventory  

                                                          2

                                       = Rs. 80,000 + X

                                           2

inventory turnover ratio  =      Rs. 6,00,000     = 5 times               

                                       =    Rs. 80,000 + X

                                                      2

                                       = Rs. 6,00,000  *2 = 5 (  Rs. 80,000 + X)

                                       = Rs. 12,000,000 = Rs. 4,00,000 + 5X

                                       = Rs. 12,000,000 - Rs. 4,00,000 = 5X

                                       = Rs. 8,00,000 = 5X

                                       = Rs. 8,00,000 = X

                                                      5

   (closing inventory) X = Rs. 1,60,000( ANSWER)