Question

When opening stock is 50000 closing stock is 60000 and the cost of goods sold is 220000 the stock turnover ratio is??

Answer 1

AVERAGE INVENTORY(STOCK) = OPENING+CLOSING STOCK/2 = 50,000+60,000/2= 55,000

STOCK TURNOVER RATIO = COST OF GOODS SOLD/AVERAGE STOCK

= 2,20,000/55,000
= 4 Times

I HOPE THIS HELPS.

Answer 2

4 times

Explanation:

Given:

Opening stock = 50,000

Closing Stock = 60,000

Cost of Goods Sold = 2,20,000

Stock turnover Ratio = ?

Computation:

Average Stock = (Opening Stock + Closing Stock) / 2

Average Stock = (50,000 + 60,000)/2

Average Stock = 55,000

Stock turnover Ratio = Cost of Goods Sold /  Average Stock

= 2,20,000 / 55,000

= 4 times

Therefore, Stock turnover ratio is 4 times.

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