Adama's opening stock is D5,000. He purchased goods worth D30,000. His closing stock was D7,000 and sales D55,000
what is the average stock
Answer Details
To calculate the average stock, we need to use the following formula:
Average Stock = (Opening Stock + Closing Stock) / 2
We are given that Adama's opening stock was D5,000 and his closing stock was D7,000. Plugging these values into the formula, we get:
Average Stock = (5,000 + 7,000) / 2
Average Stock = 12,000 / 2
Average Stock = D6,000
Therefore, the average stock of Adama's business is D6,000. This means that on average, Adama had D6,000 worth of goods in stock during the given period.