Question

Cash Sales Rs. 3, 00,000; Credit Sales Rs. 1, 10,000; Return Inward Rs. 35,000; Opening Stock Rs.

27000; Closing Stock Rs. 33,000; Gross Profit Ratio 20%. Calculate Stock Turnover Ratio.​

Answer 1

Explanation:

Net sales (cash sales + credit sales - return inward) 7,44,000

Add:- Closing stock (Lower of 54,000 or 50,400) 50,400

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7,94,400

Less:- Opening stock (90,000)

purchases ( 30,000 + 6,00,000 - 6,000) (6,24,000)

Direct expenses (1,200 + 2,400 + 1,800 + 600) (6,000)

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74,400