McqMate
| 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 AccountingDiscussion
Mohammad dilawar
1 year ago
furmula of working capital is =current assets/current liabilities. how it can be 6 times
0
Deepika Saxena
11 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
Where, working capital=current assets -current liabilities
Hence,
300000/(150000-100000)
=300000/50000
=6 times
0
Deepika Saxena
11 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
Where, working capital=current assets -current liabilities
Hence,
300000/(150000-100000)
=300000/50000
=6 times
0
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