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Question
Calculate Working Capital Turnover Ratio from the following:
| ₹ | |
| Revenue from Operations | 39,20,000 |
| Non-Current Assets | 21,00,000 |
| Total Assets | 36,00,000 |
| Shareholder’s Funds | 18,00,000 |
| Non-Current Liabilities | 10,00,000 |
Numerical
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Solution
Revenue from Operations = ₹ 39,20,000
Current Assets = Total Assets − Non-Current Assets
= ₹ 36,00,000 − ₹ 21,00,000
= ₹ 15,00,000
Current Liabilities = Total Assets − Shareholder’s Funds − Non-Current Assets
= ₹ 36,00,000 − ₹ 18,00,000 − ₹ 21,00,000
= ₹ 8,00,000
Working Capital = Current Assets − Current Liabilities
Working Capital = ₹ 15,00,000 − ₹ 8,00,000
= ₹ 7,00,000
Working Capital Turnover Ratio = `"Revenue from Operations"/"Working Capital"`
= `(₹ 39,20,000)/(₹ 7,00,000)`
= 5.6 Times
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