14 Views

Question : Working Capital turnover ratio will be - 

Particulars    

Amount

Current assets

500000

Current Liabilities

100000

Revenue from operation

2800000

Option 1: 7 Times

Option 2: 5.8 times

Option 3: 8 times

Option 4: 10 times


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: 7 Times


Solution : By dividing the firm's net annual sales by its typical working capital, one can determine the working capital turnover ratio. Total Liabilities for Total Assets is subtracted to get Working Capital.

Hence the working capital turnover will be - 

Working capital = Current assets - Current liabilities

                         = Rs.500000 - Rs.100000

                         = Rs.400000

Turnover = Rs.2800000

= Turnover / Working Capital

= Rs.2800000/Rs.400000

= 7 Times

Hence the correct answer is option 1.

Related Questions

Amity University-Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Amity University-Noida M.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
SCSVMV Deemed to be Universit...
Apply
MBA At at SCSVMV | NAAC 'A' Grade | AICTE & UGC Aproved | 100% Placement Support | Merit-based Scholarships
Amity University-Noida BBA Ad...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
VIT Bhopal University | B.Arc...
Apply
Mark presence in the Modern Architectural field with Bachelor of Architecture | Highest CTC : 70 LPA | Accepts NATA Score
New Horizon College BBA Admis...
Apply
UG Admissions 2026 open| NAAC ‘A’ grade | Merit-based Scholarships available.
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books