Question

Working capital turnover ratio can be determined by:

• A. $\left(\frac{\text{Gross Profit}}{\text{Working Capital}}\right)$
• B. $\left(\frac{\text{Cost of goods sold}}{\text{Net Sales}}\right)$
• C. $\left(\frac{\text{Revenue from Operations}}{\text{Working Capital}}\right)$
• D. None of these

Answer 1

The correct option is C

$\left(\frac{\text{Revenue from Operations}}{\text{Working Capital}}\right)$

$\text{Workig capital turnover ratio}=\left(\frac{\text{Revenue from Operations}}{\text{Working Capital}}\right)$