Question
For the financial year ended 31st March 2023, the
figures extracted from the balance sheet of ABC Ltd. are as under: Opening stock 29,000 Closing stock 31,000 Purchases 2,42,000 The stock turnover ratio will be -Solution
Opening Stock + Purchase - Closing Stock = Cost of goods sold 29,000 + 2,42,000 - 31,000 = 2,40,000 Stock Turnover Ratio = Cost of goods sold / Average Stock 2,40,000 / 30,000Ā = 8 times
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