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Standard XII
Accountancy
Working Capital Turnover Ratio
Working capit...
Question

Working capital turnover ratio is expressed in .

A
pure ratio
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B
times
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C
percentage
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D
days
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Solution

The correct option is B times
Working capital turnover ratio is expressed in times.

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Q. Working capital turnover ratio is a/an ratio.
Q.

Working capital turnover ratio can be determined by:


Q.

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)

Q. Working Capital Turnover Ratio
= Revenue from Operations / __________.
Q.

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

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