Question

annual sales of unit is 2.5 lacs. gross profit during the year is rs. 50,000. average stock is 50,000. calculate stock turn over ratio:

Answer 1

50000×50000=2500000000.















I hope this will help you.

Answer 2

Stock turn over ratio = 4 times

Step-by-step explanation:

Given:

Net sales = 2,50,000

Gross profit = 50,000

Average stock = 50,000

Stock turn over ratio = ?

Computation of Cost of goods sold:

Cost of goods sold = Net sales - Gross profit

= 2,50,000 - 50,000

Cost of goods sold = 2,00,000

Stock turn over ratio = Cost of goods sold / Average stock

Stock turn over ratio = 2,00,000 / 50,000

Stock turn over ratio = 4 times

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