Given the following information determine Monthly Stock to S

Given the following information, determine Monthly Stock to Sales Ratio: Beginning Inventory (at cost) = $80,000; Ending Inventory (at cost) = $50,000; Annual Sales at Retail $300,000; Average Gross Margin = 30%. a. 2.60 3.71 5.20 None of the above8

Solution

monthly stock to sales ratio = Begining inventory/sales per month

                                                  =80000/(300000/12)=80000*12/300000

                                                  =3.2