Working Capital Turnover Ratio
= Revenue from Operations / __________.

Cost of Revenue from operations

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Trade Payable

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Bills payable

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Working Capital

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Solution

The correct option is D Working Capital
Working Capital Turnover Ratio
= Revenue from Operations / Working Capital

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Q. Working capital turnover ratio shows the relationship between and revenue from operations

Calculate Working Capital Turnover Ratio from the following information :

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

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)

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.

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

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Working Capital Turnover Ratio = Revenue from Operations / __________.

The correct option is D Working CapitalWorking Capital Turnover Ratio = Revenue from Operations / Working Capital

Working Capital Turnover Ratio
= Revenue from Operations / __________.

The correct option is D Working Capital
Working Capital Turnover Ratio
= Revenue from Operations / Working Capital