working capital turnover ratio class 12

For example if a company 10 million in sales for a calendar year 2 million in working capital its working capital turnover ratio would be 5 million 10 million net annual sales divided by 2. RD Sharma Class 10 Solutions.

The working capital turnover ratio is thus 12000000 2000000 60.

. It signifies how well a company is generating its sales concerning the working capital. 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. Working capital Turnover ratio Net Sales Working Capital.

1 what will be the impact of following transactions. This means that every dollar of working capital produces. 420000 60000.

Download revision notes for Accounting Ratios class 12 Notes and score high in exams. Average Working Capital Working Capital on The Beginning of the Period Working Capital on The End of the Period 2. Closing inventory 60000.

We now look at the meaning and characteristics of working capital turnover ratio as mentioned in the chapter on accounting ratios class 12. Working capital turnover Net annual sales Working capital. Profitability Ratios These ratios measure the profitability of a business.

Total Revenue from operations 500000 including cash revenue from operations 100000. Working capital turnover ratio Turnover ratio Class 12. Working capital turnover ratio interpretation.

It shows the number of times a unit of Rupee invested in working capital produces sales. Where Net Sales Total Sales Returns Discounts. Calculation of Working Capital Turnover Ratio-Working Capital Turnover Ratio Net Revenue from operations Working Capital Working Capital Turnover Ratio Rs.

As clearly evident Walmart has a negative Working capital turnover ratio of -299 times. Working Capital Current assets - Current liabilities 600000 900000 - Current liabilities Current liabilities 300000. These are the Accounting Ratios class 12 Notes prepared by team of expert teachers.

Class 12 Accounting Ratios MCQs Questions with Answers. It reflects relationship between revenue from operations and net assets capital employed in the business. Working capital turnover ratio Net Sales Average working capital 514405 -17219 -299x.

Total purchases 300000 including credit purchases 60000. Working capital turnover ratio Classification of Ratios Question 12. This means that for every 1 spent on the business it is providing net sales of 7.

Working Note-Net Revenue from Operations Rs. Working capital turnover ratio 1850000370000. A From the following details calculate opening inventory.

Working capital turnover ratio 5 Times. The Formula for the Working Capital Turnover Ratio is. This concludes our article on the topic of Working Capital Turnover Ratio which is an important topic in Class 12 Accountancy for.

Working Capital Current Assets Current Liabilities. Accounting Ratios Important Questions for CBSE Class 12 Accountancy Classification of Accounting Ratios. This concludes our article on the topic of Working Capital Turnover Ratio which is an important topic in Class 12 Accountancy for Commerce students.

When inventory and current assets given Ratio Analysis Class 12 Example 10. It is a relationship between working capital and revenue from operations. The average working capital during that period was 2 million.

Net sales Total sales - sales return 130000 380000 10000 500000. 700000 Working Capital Turnover Ratio 56 times So the Working Capital Turnover Ratio is 56 times. Debt equity Ratio is 05.

What this means is that Walmart was able to generate Revenue in spite of having negative working capital. The formula for calculating this ratio is by dividing the companys sales by the companys working. From the following information calculate the working capital turnover ratio.

The working capital of a company is the difference between the current assets and current liabilities of a company. Average Collection Period 365 Trade Receivables Turnover Ratio 365 818 45 days. RD Sharma Class 12 Solutions.

The companys working capital is the difference between the current assets and current liabilities of a company. From the following information compute the current ratio. Working Capital Turnover ratio 2000000 1000000 2 times Question 7.

Revenue from the operation for the year were RS. Working capital ratio and working capital turnover ratio c Debt equity ratio and proprietary ratio d Gross profit ratio and operating ratio. In this formula the working capital is calculated by subtracting a companys current liabilities from its current assets.

Working Capital Turnover Ratio Net Sales Average Working Capital. RD Sharma Class 9 Solutions. Revision notes in exam days is one of the best tips recommended by teachers during exam days.

Working capital turnover ratio This ratio shows the number of times the working capital has been rotated in generating sales. Current Ratio 3 1 Workings. Working capital turnover ratio 5 Times.

Trade Payable Turnover Ratio Purchases Average Trade Payables Purchases Creditors Bills payable d Working Capital Turnover Ratio. Current Ratio 900000300000. The revision notes help you revise the whole chapter 14 in minutes.

Working Capital Turnover Ratio Formula. Meaning of Working Capital Turnover Ratio. The working capital turnover ratio is thus 12000000 2000000 60.

RD Sharma Class 11 Solutions Free PDF Download. Working capital Turnover ratio Net salesWorking capital.

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