BC Training Reports Sales Revenue of $2,200,000 $\begin{array}{|l|c|l|}\hline \text { Inventory turnover ratio } & \frac{\text { COGS* }}{\$ 200,000} & =8.0 \text { times } \\\hline\end{array}$

BC Training reports sales revenue of $2,200,000.Average inventory during the year was $200,000.The inventory turnover ratio for the year is 8.0.What amount of gross profit would the company report in its income statement?
$\begin{array}{|l|c|l|}\hline \text { Inventory turnover ratio } & \frac{\text { COGS* }}{\$ 200,000} & =8.0 \text { times } \\\hline\end{array}$
*COGS = $200,000 x 8.0 = $1,600,000.