Calculate stock turnover ratio from the following information of ‘Y�

1.	Calculate stock turnover ratio from the following information of ‘Y’ Company Limited :Particulars(₹)Particulars(₹)Opening stock2,00,000Closing stock1,50,000Sales40,00,000Purchases22,00,000Purchase expenses1,00,000Wages2,50,000
Answer» Average stock = \(\frac{Opening\, stock + Closing stock} {2}\) =\(\frac{2,00,000+1,50,000}{2} \)= ₹ 1,75,000 Cost of goods sold = Opening stock + Purchase + Purchase expense + Wages – Closing stock = ₹ 2,00,000 + ₹ 22,00,000 + ₹ 1,00,000 + ₹ 2,50,000 – ₹ 1,50,000 = ₹ 26,00,000 Stock turnover ratio = \(\frac{Cost\, of\, goods\, sold} {Average\, stock} =\frac{26,00,000}{1,75,000 }\)= 14.86 times

Calculate stock turnover ratio from the following information of ‘Y’ Company Limited :Particulars(₹)Particulars(₹)Opening stock2,00,000Closing stock1,50,000Sales40,00,000Purchases22,00,000Purchase expenses1,00,000Wages2,50,000

Answer»

Average stock = \(\frac{Opening\, stock + Closing stock} {2}\)

=\(\frac{2,00,000+1,50,000}{2} \)= ₹ 1,75,000

Cost of goods sold = Opening stock + Purchase + Purchase expense + Wages – Closing stock

= ₹ 2,00,000 + ₹ 22,00,000 + ₹ 1,00,000 + ₹ 2,50,000 – ₹ 1,50,000 = ₹ 26,00,000

Stock turnover ratio = \(\frac{Cost\, of\, goods\, sold} {Average\, stock} =\frac{26,00,000}{1,75,000 }\)= 14.86 times