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JAMB Commerce 2005 Question 50

Question 50

Business Calculations

Given:
Sales ₦15 000
Opening stock ₦5 600
Purchases ₦9 700
Closing stock ₦4 400
Gross profit ₦4 500
Net profit ₦2 000
From the data above, calculate the rate of turnover

  1. A.3.50 times
  2. B.3.00 timess
  3. C.2.00 times
  4. D.2.18 times
Show the answer and explanation

Answer: D (2.18 times)

Explanation

Cost of sales = 5,600 + 9,700 − 4,400 = ₦10,900. Average stock = (5,600 + 4,400)/2 = ₦5,000. Rate of turnover = 10,900 ÷ 5,000 = 2.18 times.