Question

Gross Profit at 25% on cost; Gross Profit 5,00,000; Equity Share Capital * 10,00,000; Reserves and
Surplus 2,00,000; Long-term Loan 3,00,000; Fixed Assets (Net) 10,00,000. Calculate Working Capital
Turnover Ratio.
[Working Capital Turnover Ratio = 5 Times.]
(Hint: Working Capital = 5,00,000; Total Sales = 25,00,000.)
please give step by step explanation​

Answer 1

Explanation:

working capital = shareholder fund + reserve and surplus + long term loan - fixed capital