Determine the stock turnover ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales are Rs3,20,000 & the Gross profit ratio is 25% on sales.

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RRB Paper · Accepted Answer

Stock turnover ratio = Cost of goods sold/Avg inventory

Given Gross profit ratio =25% on sales

Gross profit = Rs. 3,20,000 × 25% = Rs. 80,000

Cost of goods sold = sales - Gross profit

= 320000 - 80000 = 240000

Avg inventory= (31000 + 29000)/2= 30000

Inventory turnover ratio = Cost of goods sold/Average inventories

= 240000/30000 = 8 Times

Determine the stock turnover ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales are Rs3,20,000 & the Gross profit ratio is 25% on sales.

31 times

11 times

8 times

32 times

The correct answer is `No. 3: 8 times`

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Determine the stock turnover ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales are Rs3,20,000 & the Gross profit ratio is 25% on sales.

31 times

11 times

8 times

32 times

The correct answer is No. 3: 8 times

The correct answer is `No. 3: 8 times`