Answered

Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Last year, a Walmart store in Nebraska had annual sales of $11,390,000, with an average dollar stock amount for the year of $2,149,000. What was the stock turnover for the year at the store in Nebraska? How would the store manager determine if this was a "good" rate of turnover?

Sagot :

ayokenny2001

Answer:

See below

Explanation:

1. With regards to the information above, stock turnover is computed as cost of goods sold divided by average stock.

Stock turnover = Cost of goods sold / Average stock

Cost of goods sold/Cost of sales = $11,390,000

Average stock = $2,149,000

Then,

Stock turnover = $11,390,000 / $2,149,000

Stock turnover = 5.30 times

Therefore, the stock turnover for the year at the store in Nebraska is 5.30 times

2. The store manager would determine if it was a good rate of turnover if it increases compare to previous stock turnover. Rate of turnover shows the rate or number of times at which a company can sell and replace its stock of goods within a year.

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.