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Other Current Assets 2,00,000 Current Liabilities 75,000 aid up Share Capital 4,00,000 Statement of Profit and Loss (Dr.) 47,500 Total Debt 2,50,000 What is the working capital turnover ratio? -

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Question

Consider the following data and answer the question that follows:

Particulars
Revenue From Operations 12,00,000
Cost of Revenue from Operations 9,00,000
Operating Expenses 15,000
Inventory 20,000
Other Current Assets 2,00,000
Current Liabilities 75,000
aid up Share Capital 4,00,000
Statement of Profit and Loss (Dr.) 47,500
Total Debt 2,50,000

What is the working capital turnover ratio?

Options

  • 8 times

  • 8.28 times

  • 7.28 times

  • 8.78 times

MCQ

Solution

8.28 times

Explanation:

Working Capital Turnover Ratio = `"Revenue from Operations"/"Working Capital"`

= `(₹ 12,00,000)/(₹ 1,45,000)`

= 8.28 times

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