When opening stock is $R s .50, 000$ , closing stock is $R s 60, 000$ and the cost of goods sold is $R s .2, 20, 000$ , the stock turnover ratio is _________.

2 times

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3 times

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4 times

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5 times

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Solution

The correct option is D 4 times
Stock turnover ratio = Cost of goods sold/ average inventory
Cost of goods sold = $R s .2, 20, 000$
Average Inventory= [Opening inventory + Closing Inventory]/ $2$
= [ $50000 + 60000$ ] / $2$
= $R s . 55000$
Now,
Stock turnover ratio = $220000 / 55000$
= $4$ times.

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When opening stock is Rs.50,000, closing stock is Rs60,000 and the cost of goods sold is Rs.2,20,000, the stock turnover ratio is _________.

The correct option is D 4 timesStock turnover ratio = Cost of goods sold/ average inventoryCost of goods sold = Rs.2,20,000Average Inventory= [Opening inventory + Closing Inventory]/2 = [50000+60000] / 2 = Rs.55000Now,Stock turnover ratio = 220000/55000 = 4 times.

When opening stock is $R s .50, 000$ , closing stock is $R s 60, 000$ and the cost of goods sold is $R s .2, 20, 000$ , the stock turnover ratio is _________.

The correct option is D 4 times
Stock turnover ratio = Cost of goods sold/ average inventory
Cost of goods sold = $R s .2, 20, 000$
Average Inventory= [Opening inventory + Closing Inventory]/ $2$
= [ $50000 + 60000$ ] / $2$
= $R s . 55000$
Now,
Stock turnover ratio = $220000 / 55000$
= $4$ times.