Question : Find out the stock turnover ratio from the following information :
Opening stock = Rs. 50,000 Closing stock = Rs. 60,000 and Cost of goods sold = Rs. 2,20,000
Option 1: 5:1
Option 2: 3:1
Option 3: 4:1
Option 4: None of the above
Answer (1)
25th Jan, 2024
Correct Answer: 4:1
Solution :
Average Stock = Opening stock + Closing stock/2
Average Stock = 50,000+60,000/2=55,000
Stock turnover ratio = Cost of goods sold/ Average Stock 2,20,000/55,000 = 4:1
Hence option 3 is the correct answer.
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