Advertisements
Advertisements
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
shaalaa.com
Types of Ratios
Is there an error in this question or solution?