Question

when opening stock is 50,000, closing stock 60,000 and cost of goods sold is 2,20,000 then stock turnover ratio is-​

Answer 1

Answer:

Stock Turnover Ratio = 4 times

Explanation:

Given :

Opening Stock = 50,000

Closing Stock = 60,000

Cost of Goods Sold = 2,20,000

To find :

Stock Turnover Ratio

Solution :

★ Stock Turnover Ratio =

Cost of Goods Sold / Average Stock

$\Rightarrow{\sf{\dfrac{Cost \: of \: Goods \: Sold}{Average \: Stock}}}$

Average Stock =

Opening Stock + Closing Stock / 2

$\Rightarrow{\sf{\dfrac{Opening \: Stock \: + \: Closing \: Stock}{2}}}$

$\Rightarrow{\sf{\dfrac{50000 \: + \: 60000}{2}}}$

⇒ 55,000

Average Stock = 55,000

★ Stock Turnover Ratio :

Cost of Goods Sold = 2,20,000

Average Stock = 55,000

Stock Turnover Ratio =

$\Rightarrow{\sf{\dfrac{Cost \: of \: Goods \: Sold}{Average \: Stock}}}$

$\Rightarrow{\sf{\dfrac{220000}{55000} \: = 4}}$

⇒ 4 times

Therefore,

Stock Turnover Ratio = 4 times

Answer 2

Answer:

Hii

Explanation:

Good question really