Use the following information to answer the question below Use the following information to answer the question below Opening stock---------2,300 Purchases-------------11,874 Sales--------------------18,600 Closing stock-----------3,600 Cost of goods sold---11,500 What is the rate of stock turnover?
A. 7 times B. 6 times C. 5 times D. 4 times
Correct Answer: D
Explanation
Rate of stock of turnover= cost of goods sold average stock Average stock = \(\frac{2,300 + 3,000}{2}\) = 2,650 \(\frac{11,500}{2650}\) = 4.33 = 4 times
