What will be the stock turnover ratio if opening stock is ₹ 50,000, closing stock ₹ 60,000 and the cost of goods sold is ₹ 2,20,000?
Answer & explanation
Correct answer: option 3
Inventory Turnover Ratio = Cost of Revenue from Operations/ Average Inventory
= 220000/55000
= 4 times
Average inventory = (50000 + 60000) / 2
= ₹55000