Question

If opening stock is 50,000, closing stock is * 60,000 and cost of goods sold is
2,20,000, then stock turnover ratio will be :​

Answer 1

Answer:

Stock turnover ratio = Cost of goods sold/ average inventory

Cost of goods sold = Rs.2,20,000

Average Inventory= [Opening inventory + Closing Inventory]/2

= [50000+60000] / 2

= Rs.55000

Now,

Stock turnover ratio = 220000/55000

= 4 times.