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    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 -

    A 12 Times Correct Answer Incorrect Answer
    B 15 Times Correct Answer Incorrect Answer
    C 9 Times Correct Answer Incorrect Answer
    D 8 Times Correct Answer Incorrect Answer

    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 / 30,000  = 8 times

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