Derive the stock turnover period.(Average stock = 23,000. Cost of sales = 300,000 year = 365 days).
-
A.
28 days -
B.
42 days -
C.
27 days -
D.
23 days
Correct Answer: Option A
Explanation
Average stock / cost of sales x 365days.
23,000 ÷ 300,000 x 365 = 27.9 (Approximately 28 days)