Question

Opening stock 60000, purchase 340000, cost of good sold 300000 find stock turnover ratio

Answer 1

Answer:

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Answer 2

Given:

COGS = 3,00,000

Purchases = 3,40,000

Opening stock = 60000

To Find:

Stock Turnover Ratio

Solution:

Cost of Goods sold = Opening Inventory + Purchases - Closing Inventory

3,00,000 = 60,000 + 3,40,000 - Closing Inventory

3,00,000 = 4,00,000 - Closing Inventory

Closing Inventory = 4,00,000 - 3,00,000

= 1,00,000

Average Stock = Opening Stock + Closing Stock/2

= 60,000 + 1,00,000/2

= 1,60,000/2

= 80,000.

Stock turnover ratio = COGS/Average Stock

= 3,00,000 / 80,000

= 15/4

= 3.75

Answer: The stock turnover ratio is 3.75 times.