Following is the information given by X ltd. for the year ended 31st March, 2021. Particulars Amount (₹)

Sales
Net Profit
Cost of Sales
Long-term Debts
Creditors
Average Inventory
Current Assets
Fixed Assets
Current Liabilities
Net Profit before Interest and Tax 50,40,000
7,20,000
38,40,000
18,00,000
4,00,000
16,00,000
15,20,000
28,80,000
12,00,000

16,00,000

Working capital turnover ratio will be:

[2 marks]

0.06 times

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15.75 times

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6 times

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1.5 times

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Solution

The correct option is B 15.75 times
Working Capital Turnover Ratio =

$\frac{N e t S a l e s}{W o r k i n g C a p i t a l}$

= $\frac{₹ 50, 40, 000}{₹ 3, 20, 000}$

= 15.75 times

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Similar questions

Q. Following is the information given by X ltd. for the year ended 31st March, 2021. Particulars Amount (₹)

Sales Net Profit Cost of Sales Long-term Debts Creditors Average Inventory Current Assets Fixed Assets Current Liabilities Net Profit before Interest and Tax	50,40,000 7,20,000 38,40,000 18,00,000 4,00,000 16,00,000 15,20,000 28,80,000 12,00,000 16,00,000

Working capital will be:

[2 marks]

Q. From the following information calculate
(i) Gross Profit Ratio
(ii) Inventory Turnover Ratio
(iii) Current Ratio
(iv) Liquid Ratio
(v) Net Profit Ratio
(vi) Working Capital Ratio

$\begin{matrix} Items & Rs. Sales & 25, 20, 000 Net Profit & 3, 60, 000 Cost of Sales & 19, 20, 000 Long term Debts & 9, 00, 000 Creditors & 2, 00, 000 Average Inventory & 8, 00, 000 Current Assets & 7, 60, 000 Fixed Assets & 14, 40, 000 Current Liabillities & 6, 00, 000 Net Profit Before Interest and Tax & 8, 00, 000 \end{matrix}$

From the following information calculate:

(i) Gross Profit Ratio (ii) Inventory Turnover Ratio (iii) Current Ratio (iv) Liquid Ratio (v) Net Profit Ratio (vi) Working capital Ratio:

	Rs
Revenue from Operations	25,20,000
Net Profit	3,60,000
Cast of Revenue from Operations	19,20,000
Long-term Debts	9,00,000
Trade Payables	2,00,000
Average Inventory	8,00,000
Current Assets	7,60,000
Fixed Assets	14,40,000
Current Liabilities	6,00,000
Net Profit before Interest and Tax	8,00,000

Following are the Balance Sheets of Krish Tech Ltd. for the year ended 31st March, 2012 and 2013 (Revised).
$\begin{matrix} Particulars & Note & Amount (Rs) & Amount (Rs) No. & 2012 - 13 & 2011 - 12 1. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital & 12, 00, 000 & 8, 00, 000 (b) Reserves and Surplus (Profit & Loss Balance) & 3, 50, 000 & 4, 00, 000 (2) Non-current liabilities Long term borrowings & 4, 40, 000 & 3, 50, 000 (3) Current liability : Trade Payables & 60, 000 & 50, 000 Total & 20, 50, 000 & 16, 00, 000 II. Assets (1) Non-current Assets (a) Fixed Assets (i) Tangible Assets & 12, 00, 000 & 9, 00, 000 (2) Current Assets (a) Inventories & 2, 00, 000 & 1, 00, 000 (b) Trade Receivables & 3, 10, 000 & 2, 30, 000 (c) Cash and cash equivalents & 3, 40, 000 & 3, 70, 000 Total & 20, 50, 000 & 16, 00, 000 \end{matrix}$

Prepare a Cash Flow Statement after taking into account the following adjustments.

(a) The company paid interest Rs 36,000 on its long-term borrowing.

(b) Depreciation charged on tangible fixed assets was Rs 1,20,000.

Q. Net Profit before Interest and Tax ₹6,00,000; Net Fixed Assets ₹20,00,000; Net Working Capital ₹10,00,000; Current Assets ₹11,00,000. Calculate Return on Investment.

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The correct option is B 15.75 timesWorking Capital Turnover Ratio = Net SalesWorking Capital = ₹50,40,000₹3,20,000 = 15.75 times

The correct option is B 15.75 times
Working Capital Turnover Ratio =

$\frac{N e t S a l e s}{W o r k i n g C a p i t a l}$

= $\frac{₹ 50, 40, 000}{₹ 3, 20, 000}$

= 15.75 times