Im doing PEV june 06 - please help me with stock

gingervicki

Hi im doing june 06 and im on section 2 and have come unstuck at stock turnover.

My calculation i thought you did
stock
Cost of sales x 365 to get it in days

But its not what the answer says and im confoooooooosed now.

Please help clarify

thanks

vicki

dobbieobby

Havent looked at the paper, but isnt it stock/COSS x 365? Because stock is bought??

wolfe

hi gingervicki

the question asks for STOCK TURNOVER not STOCK TURNOVER IN DAYS!!!

the stock turnover formula is cost of sales/ stock . this will give the answer as 6.18 times. which means the that the stock will be soldout 6 times a yr

the formula u wrote is absolutely right but its for stock turnover IN DAYS

hope this clears it

gingervicki

hi, thanks for the replies, i havent been taught it any other was, so if it just says stock turnover im now sorted, thanks

vicki