Determine working capital turnover ratio if, current assets is Rs 1,50,000, current liabilities is Rs 1,00,000 and revenue from operations is Rs 3,00,000.

4 Times

No worries! We‘ve got your back. Try BYJU‘S free classes today!

2 times

No worries! We‘ve got your back. Try BYJU‘S free classes today!

6 times

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
6 times

Working capital = Rs 1,50,000 - Rs 1,00,000
= Rs 50,000

Revenue from operations = Rs 3,00,000

Working capital turnover ratio
= Rs 3,00,000/ Rs 50,000 = 6 times

Suggest Corrections

Similar questions

From the following, calculate the Gross Profit ratio and Working Capital Turnover Ratio.

Revenue from operations Rs 30,00,000

Cost of Revenue from operation Rs 20,00,000

Current Assets Rs 6,00,000

Current Liabilities Rs 2,00,000

Paid up share capital Rs 5,00,000

Compute Gross Profit Ratio, Working Capital Turnover Ratio, Debt Equity Ratio and Proprietary Ratio from the following information:

	Rs
Paid-up Share Capital	5,00,000
Current Assets	4,00,000
Revenue from Operations	10,00,000
13% Debentures	2,00,000
Current Liabilities	2,80,000
Cost of Revenue from Operations	6,00,000

	₹
Cost of Revenue from Operations (Cost of Goods Sold)	10,00,000
Current Assets	5,00,000
Current Liabilities	3,00,000

Join BYJU'S Learning Program