When opening stock is Rs 50,000, closing stock is Rs 60,000 and the cost of goods sold is RS 2,20,000, the stock turnover ratio is:
| A. | 2 times |
| B. | 3 times |
| C. | 4 times |
| D. | 5 times |
Answer : C Explanation : chandni said: (2:43pm on Sunday 28th June 2015)
how it is possible the formula is cgs divided by avg stock
Abdul Aziz said: (11:31pm on Monday 6th July 2015)
ST Ratio = cgs=220000/average stock=55000average stock = (os=50000 cls=60000)/2
ABDUL AZIZ said: (11:29am on Friday 31st July 2015)
Stock Turn Over ratio = Cost of Goods sold/ Average stock.= 220000/((50000 60000)/2)= 220000/55000= 4 Times.Ref - A text book of Accounting for Managers,, 4th edition, ; by Prof H.J.Ghosh Roy
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Option: A Explanation : Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. |
