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    Question

    If the company earned revenue from operations of Rs.18

    lakh, what is the working capital turnover ratio of the company?
    A 1.38 times Correct Answer Incorrect Answer
    B 1.32 times Correct Answer Incorrect Answer
    C 1.04 times Correct Answer Incorrect Answer
    D 1.09 times Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Working capital turnover ratio = net revenue/working capital Working capital = current assets – current liabilities                         = 18,00,000 – 5,00,000                         = 13,00,000 Thus, Working capital turnover ratio   =18,00,000/ 13,00,000                                                             = 1.38 times

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