Current Assets Rs5 00 000 Current Liabilities Rs1 00 000 Revenue from Operations Rs28 00 000 Working...........

Current Assets Rs5,00,000; Current Liabilities Rs1,00,000; Revenue from Operations Rs28,00,000. Working Capital turnover Ratio will be:

7 times

5.6 times

8 times

10 times

- Current Assets: These are assets expected to be liquidated or used within a year, totaling Rs. 5,00,000.

- Current Liabilities: These are the company’s obligations due within a year, amounting to Rs. 1,00,000.

- Working Capital: Calculated as Current Assets minus Current Liabilities. So, working capital is Rs. 5,00,000 - Rs. 1,00,000 = Rs. 4,00,000.

- Revenue from Operations: This is the income generated from normal business operations, which is Rs. 28,00,000.

- Working Capital Turnover Ratio: It is calculated using the formula: Revenue from Operations / Working Capital.

- Calculation: Rs. 28,00,000 / Rs. 4,00,000 = 7 times.

- Correct Option:

- Option 1: 7 times is the correct answer based on the calculation.

Submit Error