A trader’s turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the…

A trader’s turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock was D3,000.
What is the rate of turnover?

  • A.
    13.5 times
  • B.
    10.8 times
  • C.
    9 times
  • D.
    5.4 times
Correct Answer: Option B
Explanation

The inventory turnover ratio is calculated by dividing the cost of goods sold for a period by the average inventory for that period

COGS / average stock = Rate of turnover

cogs = opening stock + purchases – closing stock
2000 + 28000 – 3000 = 27000

Average stock = opening stock + closing stock / 2
2000 + 3000 / 2 = 2500

Rate of turnover = 27000/ 2500 = 10.8 times

 

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Find the range of values of x which satisfies the inequality 12×2 A. -(frac{1}{4}) B. (frac{1}{4}) C. -(frac{1}{3})…
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