Use the following information to answer below
GH⊄
Sales 200000
Purchase 170000
Opening stock 40000
Closing stock 50000
Stock turnover ratio is
  • A 3.78 times
  • B 3.56 times
  • C 4 times
  • D 3.2 times
waec 2022accounting

The correct answer is B. 3.56 times

Stock turnover = Cost of goods sold/Average stock

where Average stock = Opening stock + Closing stock /2

160,000 / 40,000 +50,000 /2

= 160,000 /45,000

= 3.555

≃ 3.56 times

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