Current Assets Rs 5 00 000 Current Liabilities Rs 1 00 000 Revenue from Operations Rs 28 00 000 Work...........

General Accounting Principles Ratio analysis

Current Assets Rs 5,00,000; Current Liabilities Rs 1,00,000; Revenue from Operations Rs 28,00,000. Working Capital turnover Ratio will be:

7 times

5.6 times

8 times

10 times

GIVEN: Current Assets Rs 5,00,000; Current Liabilities Rs 1,00,000; Revenue from Operations Rs 28,00,000

Working capital = current assets - current liabilities

= Rs. 5,00,000 - Rs. 1,00,000

= Rs. 4,00,000

working capital turnover ratio =Revenue from Operations/ working capital

= Rs. 28,00,000/ Rs. 4,00,000

= 7 times

By: Subhash Singh

Submit Error

in solution cost of revenue from operations is incorrectly mentioned

Ankur sharma

thanks for your feedback

in question it should be cost of revenue from operations.