Question

Calculate working capital turnover ratio cash 30000 trade receivable 15000 gross profit 15000 closing stock 10000 prepaid expenses 5000 trade payables 18000 sales 50000 purchase 36000 return outwards 6000

Answer 1

Hello Mate,

The working capital turnover ratio is calculated by dividing net annual sales by the average amount of working capital – current assets minus current liabilities — during the same 12-month period.

For example,

Company A has $12 million of net sales over the past 12 months.