On the basis of following data the Waiting Capital Turnover Ratio of a company will be Liquid Assets...........

On the basis of following data, the Waiting Capital Turnover Ratio of a company will be :

Liquid Assets Rs3,70,000; Inventory Rs80,000; Current Liabilities Rs1,50,000; Cost of levcnue from operations Rs7,50,000.

2.5 Times

3 Trimes

5 Times

3.8 Times

To find the Working Capital Turnover Ratio, we use the formula:

$$ \text{Working Capital Turnover Ratio} = \frac{\text{Cost of Revenue from Operations}}{\text{Working Capital}} $$

* Working Capital = Liquid Assets + Inventory - Current Liabilities

* Liquid Assets = Rs 3,70,000

* Inventory = Rs 80,000

* Current Liabilities = Rs 1,50,000

* Calculate Working Capital:

* Rs 3,70,000 + Rs 80,000 - Rs 1,50,000 = Rs 3,00,000

* Working Capital Turnover Ratio:

* $\frac{7,50,000}{3,00,000} = 2.5 \text{ Times}$

* Correct option:

* Option 1: 2.5 Times

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