Question

when opening stock is rs 100000 closing stock rs 120000 and cost of goods sold rs 440000 stock turnover ratio is
a 3 times
b 4 times
c 2 times
d 5 times​

Answer 1

Answer:

d 5 times mark me brainlist

Answer 2

Option(b) is the correct answer.

Given,

Opening stock = Rs. 100,000

Closing stock = Rs. 120,000

Cost of good sold = Rs. 440,000

To Find,

Stock turnover ratio =?

Solution,

Average = [Opening stock  + Closing stock] / 2

Average = [1,00,000 + 1,20,000] / 2

Average = 2,20,000 / 2

Average = Rs. 1,10,000

Stock turnover ratio = Cost of good sold  / Average

Stock turnover ratio = 4,40,000 / 1,10,000

Stock turnover ratio = 4

Hence, the stock turnover ratio is 4 times.