1338. “For the financial year ended as on March 31, 20XX the figures extracted from the balance sheet of Xerox Limited as under: Opening Stock Rs 29,000; Purchases Rs 2,42,000; Sales Rs 3,20,000; Gross Profit 25% of Sales. Stock Turnover Ratio will be” :-

By Administrator / August 24, 2025

8 times

6 times

9 times

10 times

✅ The correct answer is A.
Inventory turnover ratio = cost of goods sold / average inventory at cost

cost of goods sold is 25% of sales i.e
320000 * 25 % = 8000

average inventory at cost = 31000 – 29000 = 1000.

Stock turnover ratio = 8000/1000 = 8 times.

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