Question
NMO Inc has the following accounting information
>Current Assets at the beginning of a year = Rs 580 Current Assets at the end of a year = Rs 620 Current Liabilities at the beginning of a year = Rs 275 Current Liabilities at the end of a year = Rs 325 Revenue for the year is Rs 4000 Calculate its working capital turnover ratioSolution
Beginning WC = 580-275 = 305 Ending WC = 620-325 = 295 Average WC = (305+295)/2 = 300 WC Turnover = Revenue/Average WC = 4000/300 = 13.33
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