Question

17. Sales are `33,984, sales return
380, opening stock`1,378,
closing stock 1,814 G.P. `8,068.
Stock turnover ratio will be
10 times
12 times
15 times
16 times​

Answer 1

Answer:

     Stock turnover ratio = 16

Explanation:

Stock turnover ratio is defined as how soon the enterprises  sell the stock to reaches its sales

Cost of goods sold = Sales- Gross profit

                               = (33984-380)- 8,068

                              = 33604-8,068

                              = 25536

Cost of goods sold s the actual cost incurred during business transaction

Stock turnover ratio = Cost of goods sold

                                      Average of stock

Average of stock    =   (opening stock + closing stock )

                                                       2

                              = 1,378+1,814       = 1596

                                     2

Stock turnover ratio = 25536/1596

                                 =  16