Determine Working capital turnover ratio if, Current asset is Rs 1,50,000, current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000.
A)5 times
B)6 times
C)3 times
D)1.5 times

Question

Quizplus · Accepted Answer

The working capital turnover ratio is calculated by dividing the cost of goods sold by the working capital. Working capital is current assets minus current liabilities, which is Rs 1,50,000 - Rs 1,00,000 = Rs 50,000. The cost of goods sold is Rs 3,00,000. Therefore, the working capital turnover ratio is Rs 3,00,000 / Rs 50,000 = 6 times.

Determine Working Capital Turnover Ratio If, Current Asset Is Rs