Question
What is the stock turnover ratio of the company for the
year ended 31 March 2020? Refer to the following information to answer the next 4 questions (Q5 to Q8) ÂSolution
Stock turnover ratio = Cost of goods sold / Average stock  Cost of goods sold = 3,00,000 (calculated earlier) Average stock = (opening stock + closing stock) / 2 = (76250 + 98500) / 2 = 87,375  Stock turnover ratio   = 300,000/ 87,375 = 3.43 times
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