A business has the following trading account for the year ending 31 May 2008: £ £ Sales turnover 90,000 Opening stock Add: Purchases 8,000 53,000 61,000 Less: Closing stock 12,000 49,000 41,000 Gross profit Its rate of stock turnover for the year is ...times

A business has the following trading account for the year ending 31 May 2008: £ £ Sales turnover 90,000 Opening stock Add: Purchases 8,000 53,000 61,000 Less: Closing stock 12,000 49,000 41,000 Gross profit Its rate of stock turnover for the year is ...times

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

A business has the following trading account for the year ending 31 May 2008:
£
£
Sales turnover
90,000
Opening stock
Add: Purchases
8,000
53,000
61,000
Less: Closing stock
12,000
49,000
41,000
Gross profit
Its rate of stock turnover for the year is
...times

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