From the following information, calculate Working Capital Turnover Ratio:

₹

Cost of Revenue from Operations (Cost of Goods Sold) 10,00,000

Current Assets 5,00,000

Current Liabilities 3,00,000

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Solution

Working Capital = Current Assets – Current Liabilities
= 5,00,000 – 3,00,000 = 2,00,000

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Similar questions

From the following Balance Sheet and other information, calculate following ratios:

(i) Debt-Equity Ratio (ii) Working Capital Turnover Ratio (iii) Trade Receivables Turnover Ratio

Balance Sheet as at March 31, 2017
Particulars	Note No.	Rs.
I. Equity and Liabilities:
1. Shareholders’ funds
a) Share capital		10,00,000
b) Reserves and surplus		9,00,000
2. Non-current Liabilities
Long-term borrowings		12,00,000
3. Current Liabilities
Trade payables		5,00,000
Total		36,00,000
II. Assets
1. Non-current Assets
a) Fixed assets
Tangible assets		18,00,000
2. Current Assets
a) Inventories		4,00,000
b) Trade Receivables		9,00,000
c) Cash and cash equivalents		5,00,000
Total		36,00,000

Additional Information: Revenue from Operations Rs. 18,00,000

The following Balance Sheet and other information, calculate following ratios:

(i) Debt-Equity Ratio (ii) Working Capital Turnover Ratio (iii) Trade Receivables Turnover Ratio

Balance Sheet as at March 31, 2017
Particulars	Note No.	Rs.
I. Equity and Liabilities:
1. Shareholders’ funds
a) Share capital		10,00,000
b) Reserves and surplus		9,00,000
2. Non-current Liabilities
a) Long-term borrowings		12,00,000
3. Current Liabilities
a) Trade payables		5,00,000
Total		36,00,000
II. Assets
1. Non-current Assets
a) Fixed assets
Tangible assets		18,00,000
2. Current Assets
a) Inventories		4,00,000
b) Trade Receivables		9,00,000
c) Cash and cash equivalents		5,00,000
Total		36,00,000

Additional Information: Revenue from Operations Rs. 18,00,000 Calculate:

i) Debt-Equity Ratio

ii) Working Capital Turnover Ratio

iii) Trade Receivables Turnover Ratio

(Debt-Equity Ratio 0.63:1; Working Capital Turnover Ratio 1.39 times; Trade Receivables Turnover Ratio 2 times)

The following Balance Sheet and other information, calculate following ratios:

(i) Debt Equity Ratio (ii) Working Capital Turnover Ratio (iii) Debtors Turnover Ratio

Liabilities	Amount Rs	Assets	Amount Rs
General Reserve	80,000	Preliminary Expenses	20,000
Profit and Loss	1,20,000	Cash	1,00,000
Loan @15%	2,40,000	Stock	80,000
Bills Payable	20,000	Bills Receivables	40,000
Creditors	80,000	Debtors	1,40,000
Share Capital	2,00,000	Fixed Assets	3,60,000
	7,40,000		7,40,000

Calculate Working Capital Turnover Ratio from the following information :

$\begin{matrix} Rs. Current Assets & 1, 80, 000 Current Liabilities & 30, 000 Cost of Revenue from Operations & 10, 00, 000 Gross Profit & 20% of Cost \end{matrix}$

Q. On the basis of the following information calculate:

(i) Debt to Equity Ratio; and
(ii) Working Capital Turnover Ratio.

Information:		₹		₹
Revenue from Operations:	(a) Cash Sales	40,00,000	Paid-up Share Capital	17,00,000
	(b) Credit Sales	20,00,000	6% Debentures	3,00,000
Cost of Goods Sold		35,00,000	9% Loan from Bank	7,00,000
Other Current Assets		8,00,000	Debentures Redemption Reserve	3,00,000
Current Liabilities		4,00,000	Closing Inventory	1,00,000

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

From the following information, calculate Working Capital Turnover Ratio: ₹ Cost of Revenue from Operations (Cost of Goods Sold) 10,00,000 Current Assets 5,00,000 Current Liabilities 3,00,000

Working Capital = Current Assets – Current Liabilities = 5,00,000 – 3,00,000 = 2,00,000

From the following information, calculate Working Capital Turnover Ratio:

₹

Cost of Revenue from Operations (Cost of Goods Sold) 10,00,000

Current Assets 5,00,000

Current Liabilities 3,00,000

Working Capital = Current Assets – Current Liabilities
= 5,00,000 – 3,00,000 = 2,00,000