Question

Find the working capital turnover ratio based on the following information taken from the books of a company: (1) Income from operations Rs. 30, 00, 000. (ii) movable assets Rs.6, 00, 000 (it) movable liability Rs.3,00,000 (iv) Non-movable liability Rs. 2,00,000. (v) Non-movable assets Rs.5, 00, 000 Rs.​

Answer 1

Answer:

Formula :- Net Working Capital Turnover Ratio = Cost of goods sold ÷ Working Capital

Explanation:

Shutra ke anusaar -- Cost of goods sold = Income from operation 30,00,000

Working Capital = Current A. - Current Li.

Working Capital = 6,00,000 - 3,00,000

Working Capital = 3,00,000

FRML. Net Working Capital Turnover Ratio = Cost of goods sold ÷ working Capital

= 30,00,000 ÷ 3,00,000

= 10 times Answer