Question

calculate working capital turnover ratio . marketable securities rs 150000 , Inventory rs 50000 sundry debtors rs 200000 bill receivable rs 500000 cash at bank 100000 cash in hand 50000 biill payable 30000 sundry creditors 200000 provision of tax 20000 sales 2300000 return inward 200000
no​

Answer 1

Answer:

working capital turnover ratio=revenue from operation/working capital=2100000/350000=6 times

Explanation:

working capital= Marketable securities+inventory+sundry debtors+ bills receivables+cash at bank+cash in hand - bills payable - sundry creditors - provision for tax

working capital= 150000+50000+200000+50000+100000+50000-30000-200000-20000

working capital= 3,50,000

revenue from operations= sales- return inwards

revenue from operations= 2300000- 200000= 21,00,000