Use the following information to answer below GH⊄ Sales 200000 Purchase 170000 Opening stock 40000 Closing stock 50000 Stock turnover ratio is

The stock turnover ratio is a financial ratio that measures the number of times a company's stock or inventory is sold and replaced within a specific period. It indicates how efficiently a company manages its inventory. To calculate the stock turnover ratio, we divide the cost of goods sold by the average stock. Given the information provided: Sales: GH⊄ 200,000 Purchase: GH⊄ 170,000 Opening stock: GH⊄ 40,000 Closing stock: GH⊄ 50,000 First, we need to calculate the cost of goods sold (COGS): COGS = Opening stock + Purchase - Closing stock = GH⊄ 40,000 + GH⊄ 170,000 - GH⊄ 50,000 = GH⊄ 160,000 Next, we calculate the average stock: Average stock = (Opening stock + Closing stock) / 2 = (GH⊄ 40,000 + GH⊄ 50,000) / 2 = GH⊄ 45,000 Finally, we can calculate the stock turnover ratio: Stock turnover ratio = COGS / Average stock = GH⊄ 160,000 / GH⊄ 45,000 ≈ 3.56 times (rounded to two decimal places) Therefore, the stock turnover ratio is approximately 3.56 times.