Q.

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
Answer» B. 6 times

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Management Accounting

Discussion

Deepika Saxena
6 months ago

No the formula for working capital turnover ratio is; "cost of goods sold/working capital" Where, working capital=current assets -current liabilities Hence, 300000/(150000-100000) =300000/50000 =6 times
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Mohammad dilawar
1 year ago

furmula of working capital is =current assets/current liabilities. how it can be 6 times
0

Deepika Saxena
6 months ago

No the formula for working capital turnover ratio is; "cost of goods sold/working capital" Where, working capital=current assets -current liabilities Hence, 300000/(150000-100000) =300000/50000 =6 times
0

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