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    • Question

      Calculate the Working Capital Turnover Ratio:

      Refer to the following information to answer the next 4 questions (Q15 to Q18):
      A 8 Times Correct Answer Incorrect Answer
      B 10 Times Correct Answer Incorrect Answer
      C 5 Times Correct Answer Incorrect Answer
      D 12 Times Correct Answer Incorrect Answer
      E 6 Times Correct Answer Incorrect Answer

      Solution

      Working Capital Turnover Ratio = Net Sales / Working Capital =12,00,000/ 1,50,000   Working Capital = Current Assets – Current Liabilities = 2,10,000 – 60,000 = 1,50,000                   Current Assets: Closing Stock + Trade Receivables + Cash = 1,00,000 + 1,00,000 +10,000 = 2,10,000 Current Liabilities = Trade payables + Bank Overdraft = 40,000 + 20,000 = 60,000  

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