Question

working capital turnover ratio if.
cost of revenue from operation is = Rs. 960000.
gross profit =20%
excess of current assets over current liabilities = Rs. 300000​

Answer 1

Answer:

Ans-4:1  

Explanation:

Cogs=9,60,000

Excess of CA over CL = WC

GP On Sales=20%

So GP=1/5th on Sales or 1/4 on Cogs

GP= 1/4 OF 9,60,000

    =2,40,000

So Total Sales= 9.6L+2.4L=12L

WCTR=Sales/Working Capital

          =12L/3L

          =4:1