Question

From the following information, calculate stock turnover ratio ______?

Sales: Rs.4, 00,000, Average Stock: Rs.55, 000, Gross Loss Ratio: 10%

पर्याय

• 7 times

• 8 times

• 4 times

• 2 times

Answer 1

8 times

Explanation:

Sales = Rs. 4,00,000

Gross Loss = 10% of Rs. 4,00,000 = Rs. 40,000

Cost of goods Sold = Sales + Gross Loss

= Rs. 4,00,000 + Rs. 40, 000

= Rs. 4,40,000

Stock Turnover Ratio = Cost of Goods Sold/Average Stock

= Rs. 4,40,000/Rs. 55,000

= 8 times.