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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 Accounting1 year ago

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

0

1 year 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

1 year 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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