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From the Following Information, Calculate Working Capital Turnover Ratio: - Accountancy

Sum

From the following information, calculate Working Capital Turnover Ratio:

 
Cost of Revenue from Operations (Cost of Goods Sold) 10,00,000
Current Assets 5,00,000
Current Liabilities 3,00,000
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Solution

Working Capital = Current Assets – Current Liabilities

= 5,00,000 – 3,00,000 = 2,00,000

Working Capital Turnover Ratio = `"Cost of Goods Sold"/"Working Capital" = 1000000/200000` = 5 times

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APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 3 Accounting Ratios
Exercise | Q 96 | Page 104
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