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Question
From the following information, calculate stock turnover ratio ______?
Sales: Rs.4, 00,000, Average Stock: Rs.55, 000, Gross Loss Ratio: 10%
Options
7 times
8 times
4 times
2 times
MCQ
Fill in the Blanks
Solution
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.
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