working capital turnover ratio class 12

This means that every dollar of working capital produces. From the following information calculate the working capital turnover ratio.

How To Calculate Working Capital Turnover Ratio Flow Capital

The average working capital during that period was 2 million.

. Trade Receivables Turnover Ratio. Working Capital Current assets - Current liabilities 600000 900000 - Current liabilities Current liabilities 300000. We now look at the meaning and characteristics of working capital turnover ratio as mentioned in the chapter on accounting ratios class 12.

Accounting Ratios Class 12 MCQs Questions with Answers. The questions and answers of how is provision for doubtful debt a part of current liability in inventory turnover ratio and working capital turnover ratio are solved by group of students and teacher of class 12 which is also the largest student community of class 12. Working capital turnover ratio This ratio shows the number of times the working capital has been.

ABC Company has 12000000 of net sales over the past twelve months and average working capital during that period of 2000000. 1 what will be the impact of following transactions. The working capital turnover ratio is thus 12000000 2000000 60.

Working Capital Turnover ratio 2000000 1000000 2 times Question 7. Working capital turnover ratio 5 Times. Working capital Current assets - Current liabilities Working capital 550000 - 180000 Working capital 370000 Working note 2.

Working capital turnover ratio 1850000370000. Compute working capital turnover ratio from the following information Cash revenue from operations Rs 130000 credit revenue from operations Rs 380000 sales returns Rs 10000 liquid assets Rs 140000 current liabilities Rs. Debt equity Ratio is 05.

Example of the Working Capital Turnover Ratio. Calculation of Working Capital Turnover Ratio-Working Capital Turnover Ratio Net Revenue from operations Working Capital Working Capital Turnover Ratio Rs. From the following information compute the current ratio.

100000 and total assets RS 2100000. Therefore the working capital ratio for XYZ Limited is 50. For Calculation of ratios Formula must be written as it carries marks.

Working capital turnover ratio This ratio shows the number of times the working capital has been rotated in generating sales. The working capital turnover ratio is thus 12000000 2000000 60. Net sales average working capital working capital turnover ratio 10000000 2000000 50.

RD Sharma Class 10 Solutions. 130000 380000 10000 500000. The revision notes help you revise the whole chapter 14 in minutes.

Ans b Given that. Working capital turnover ratio Classification of Ratios Question 12. Working Note-Net Revenue from Operations Rs.

Average Trade Receivables 9 00000. It is a relationship between working capital and revenue from operations. The calculation of its working capital turnover ratio is.

Calculate Working Capital Turnover Ratio from the following Answer. Putting the values in the formula of working capital turnover ratio we get. 200000 and general reserve Rs.

Revision notes in exam days is one of the best tips recommended by teachers during exam days. Working capital turnover ratio is used to determine the efficiency by which a company is able to support sales. Working capital ratio and working capital turnover ratio c Debt equity ratio and proprietary ratio d Gross profit ratio and operating ratio.

It shows the number of times a unit of Rupee invested in working capital produces sales. Closing inventory 60000. NCERT Solutions for Class 12 Commerce Accountancy Chapter 5 Accounting Ratios are provided.

From the following information calculate the following ratios. These are the Accounting Ratios class 12 Notes prepared by team of expert teachers. RD Sharma Class 11 Solutions Free PDF Download.

Revenue from the operation for the year were RS. Class 12 Accounting Ratios MCQs Questions with Answers. The working capital turnover ratio is an effective way that companies use to.

When inventory and current assets given Ratio Analysis Class 12 Example 10. Meaning of Working Capital Turnover Ratio. Working capital turnover ratio 500000125000 4 times.

12000000 Net sales 2000000 Average working capital 60 Working capital turnover ratio. Current Ratio 3 1 Workings. Current Ratio 900000300000.

Iii Return on Investment. Profitability Ratios These ratios measure the profitability of a business. RD Sharma Class 9 Solutions.

A From the following details calculate opening inventory. 700000 Working Capital Turnover Ratio 56 times So the Working Capital Turnover Ratio is 56 times. Download revision notes for Accounting Ratios class 12 Notes and score high in exams.

Students can refer to mcq questions for class 12 accounting ratios provided below. This concludes our article on the topic of Working Capital Turnover Ratio which is an important topic in Class 12 Accountancy for. Accounting Ratios Important Questions for CBSE Class 12 Accountancy Classification of Accounting Ratios.

Total Revenue from operations 500000 including cash revenue from operations 100000. Total purchases 300000 including credit purchases 60000. Working capital turnover ratio Activityratio class 12 trade payables ratioThis video includesWhat is activity turnover ratioIs current ratio a part.

Ii Inventory Turnover Ratio. 100000 and total assets RS 2100000. Working capital turnover ratio Turnover ratio Class 12.

Use the following working capital turnover ratio formula to calculate the working capital turnover ratio. The formula for calculating working capital turnover ratio is. RD Sharma Class 12 Solutions.

Working Capital Current Assets Current Liabilities 18 00000 5 00000 13 00000. Net Credit Sales 18 00000.

Working Capital Turnover Ratios Universal Cpa Review