working capital turnover ratio class 12
Working Capital Turnover Ratio Formula. Two basic measures of liquidity are.
Working Capital Turnover Ratio Example 2.
. Working capital turnover ratiocost of revenue from operations or revenue from operations i. From the following information calculate the working capital turnover ratio. Meaning of Working Capital Turnover Ratio.
Hence the Working Capital Turnover ratio is 288 times which means that for every sale of the unit 288 Working Capital is utilized for the period. Working capital Turnover ratio Net Sales Working Capital 420000 60000 7. Revenue from the operation for the year were RS.
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500000 reserve surplus Rs. A 3 times b 5 times c 8 times d 4 times. Financial Management Important Questions for CBSE Class 12 Fixed Capital and Working Capital.
Working capital turnover ratio Classification of Ratios Question 12. From the following information calculate the working capital turnover ratio. Plant and machinery land and building etc.
Working capital turnover ratio 1850000370000. The value of current liabilities will be. MCQ Questions Class 12 Accountancy Accounting Ratios Question.
It reflects relationship between revenue from operations and net assets capital employed in the business. 60000Calculate net credit revenue from operations. It shows the number of times a unit of Rupee invested in working capital produces sales.
Accounting Ratios CBSE Notes for Class 12 Accountancy Topic 1. Revenue from the operation for the year was RS. Average Trade Receivables 9 00000.
From the following information calculate the following ratios. If share capital Rs. NCERT Solutions for Class 12 Commerce Accountancy Chapter 5 Accounting Ratios are provided here with simple step-by-step explanations.
Current assets cash bank trade receivable current assets 200000 300000 50000 current assets 550000 Let cost of goods sold be 100. Compute the Working Capital Turnover Ratio of the company. These solutions for Accounting Ratios are extremely popular among Class 12 Commerce students for Accountancy Accounting Ratios Solutions come handy for quickly completing your homework and preparing for exams.
Working capital turnover ratio 1850000370000. Current Ratio 25 Quick Ratio 15 Working Capital 60000. When ratios are calculated on.
Ratio It is an arithmetical expression of relationship between two related or interdependent items. 100000 and total assets RS 2100000. Working capital turnover ratio 5 Times Working note 1.
Accounting Ratios Class 12 Accountancy MCQs Pdf. In this formula the working capital is calculated by subtracting a companys current liabilities from its current assets. 200000 and general reserve Rs.
This means that for every 1 spent on the business it is providing net sales of 7. The amount of capital investment in fixed assets is called fixed capital eg. Working Capital Current Assets Current Liabilities 18 00000 5 00000 13 00000.
500000 reserve surplus Rs. Cost of revenue from operations is 1200000. If share capital Rs.
A Inventory turnover and Current ratio B Current ratio and Quick ratio C Gross Profit ratio and Operating ratio. A 15000. It is a relationship between working capital and revenue from operations.
Its working capital turnover ratio will be. Net Credit Sales 18 00000. Working capital turnover ratio Turnover ratio Class 12.
The formula for calculating this ratio is by dividing the sales of the. 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. Working capital Current assets - Current liabilities Working capital 550000 - 180000.
The working capital turnover ratio is thus 12000000 2000000 60. Ii Inventory Turnover Ratio. Working capital turnover Net annual sales Working capital.
Students can refer to mcq questions for class 12 accounting ratios provided below. The best app for CBSE students now provides accounting for partnership firms fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. Accounting Ratios class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app.
This means that every dollar of working capital produces 6 in revenue. This concludes our article on the topic of Working Capital Turnover Ratio which is an important topic in Class 12 Accountancy for. Accounting Ratios It is a mathematical expression that shows the relationship between various items or groups of items shown in financial statements.
Working capital turnover ratio 5 Times. Trade Payable Turnover Ratio Purchases Average Trade Payables Purchases Creditors Bills payable 420000 90000 52000 420000 142000 296 times d Working Capital Turnover Ratio. Trade Receivables Turnover Ratio.
200000 and general reserve Rs. A firms current assets are 360000 current ratio is 3. We now look at the meaning and characteristics of working capital turnover ratio as mentioned in the chapter on accounting ratios class 12.
Exercise Q 103 Page 104. It signifies that how well a company is generating its sales with respect to the working capital of the company. Iii Return on Investment.
Ans b Given that. Multiple Choice Questions Select the best alternate and check your answer with the answers given at the end of the book. MCQ Questions for Class 12 Accounting Ratios.
Take the Next Step to Invest. From the Balance Sheet of Bill Energy Limited Listed Company Calculate the Working Capital Turnover Ratio for Five Years and Interpret the same. Putting the values in the formula of working capital turnover ratio we get.
100000 and total assets RS 2100000. A Liquidity Ratios 1. Trade receivable turnover ratio 5 times average trade receivables Rs.
Compute Gross Profit Ratio from the following information. The working capital of a company is the difference between the current assets and current liabilities of a company.
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