12th class - commercemine

Question 116:

From the following information, calculate Working Capital Turnover Ratio:

Cost of Revenue from Operations (Cost of Goods Sold) ₹10,00,000

Current Assets ₹5,00,000

Current Liabilities ₹3,00,000

Answer:

Working Capital	= Current Assets - Current Liabilities
	= 5,00,000 - 3,00,000
	= 2,00,000
Working Capital Turnover Ratio	= Cost of Revenue from Operations/ Working Capital
	= 10,00,000/2,00,000
	= 5 Times

Question 117:

Revenue from Operations: Cash Sales ₹5,00,000; Credit Sales ₹6,00,000; Sales Return ₹1,00,000. Current Assets ₹3,00,000; Current Liabilities ₹1,00,000. Calculate Working Capital Turnover Ratio.

Answer:

Net Sales = Cash Sales + Credit Sales − Sales Returns

= 5,00,000 + 6,00,000 − 1,00,000 = 10,00,000

Working Capital= Current Assets - Current Liabilities

Working Capital Turnover=Net sales/ Working Capital

=10,00,000/2,00,000

= 5 Times

Question 118:

Equity Share Capital ₹15,00,000; Gross Profit on Revenue from Operations, i.e., Net Sales 33 1/3% ; Cost Revenue from Operations or Cost of Goods Sold ₹20,00,000; Current Assets ₹10,00,000; Current Liabilities ₹2,50,000. Calculate Working Capital Turnover Ratio.

Answer:

Net Sales = Cost of Goods sold + Gross Profit
Net Sales =20,00,000+1/3 of Net Sales
Let Net Sales =x
x=20,00,000+ x/3

Net sales (x)= 60,00,000/2=30,00,000

Working Capital= Current Assets - Current Liabilities

=10,00,000-2,50,000

=7,50,000

Working Capital Turnover=Net sales/ Working Capital

=30,00,000/7,50,000 = 4 Times

Question 119:

Capital Employed ₹12,00,000; Net Fixed Assets 8,00,000; Cost of Goods Sold or Cost of Revenue from Operations ₹40,00,000; Gross Profit is 20% on Cost. Calculate Working Capital Turnover Ratio.

Answer:

Cost of Goods Sold = 40,00,000

Gross Profit = 20% of Cost

Gross Profit =20/100×40,00,000=8,00,000

Total Sales	= Cost of goods sold + Gross profit
	=40,00,000+8,00,000 =48,00,000
Working Capital	= Capital employed – Net FixedAssets =12,00,000-8,00,000 =4,00,000
Working Capital turnover ratio	= Net sales /WorkingCapital
	=48,00,000/4,00,000
	= 12 Times

Trade Receivable Turnover Ratio

Question 120:

Calculate Working Capital Turnover Ratio from the following information:
Revenue from Operations ₹15,00,000; Current Assets ₹6,25,000; Total Assets ₹10,00,000; Non-current Liabilities ₹5,00,000, Shareholders' Funds ₹2,50,000.