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
|
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.
Answer:
Working Capital Turnover Ratio =
Net Sales/Working Capital
Revenue from Operations (Net Sales)
= ₹15,00,000
(Given)Working Capital=Current Assets-Current Liabilities
Current Assets = 6,25,000
(Given)Current Liabilities= ?
Total Assets =
Total Liabilities = ₹10,00,000
(Given)Total Liabilities =
Shareholders' Funds + Non-Current Liabilities +
Current Liabilities
10,00,000
=2,50,000+5,00,000+Current Liabilities
Current Liabilities = ₹2,50,000
Working Capital=6,25,000-2,50,000= ₹3,75,000
Working Capital Turnover Ratio=15,00,000/3,75,000
Working Capital Turnover Ratio
=4 times
Ts Grewal Solution 2025-2026
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Class 12 / Volume – III
Chapter 4 – Accounting Ratios