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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


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 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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