ابدأ بالتواصل مع الأشخاص وتبادل معارفك المهنية

أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.

متابعة

A company's net sales for a recent year were $2,400,000 and its average amount of working capital during the year was $400,000,?

user-image
تم إضافة السؤال من قبل Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
تاريخ النشر: 2015/07/16
SYED SUHAIL SYED MASOOD
من قبل SYED SUHAIL SYED MASOOD , Property Manager and Accounts , PRIME PROFILE STRUCTURAL STEEL MFG LLC

working capital turnover ratio be calculated as follows: net annual sales divided by the average amount of working capital during the same12 month period.

The Answer is a)6

Nitin  Bohara
من قبل Nitin Bohara , Senior Associate , PwC India

The working capital turnover ratio is calculated by dividing the net sales by the average working capital:

Working Capital Turnover Ratio = Net Sales / Average Working Capital

In this case:

Working Capital Turnover Ratio = $2,400,000 / $400,000 = 6

Therefore, the working capital turnover ratio for the company is 6.

NABIN PRAJAPATI
من قبل NABIN PRAJAPATI , Project Coordinator Engineer , Omstone Asia Capital Nepal Pvt. Ltd.

The correct working capital Turnover ratio is a) 6

Muhammad  Awais
من قبل Muhammad Awais , Web Developer , Fiverr

Working capital turnover ratio = Net sales / Average working capital = $2,400,000 / $400,000 = 6 ( option (a))

So, the working capital turnover ratio for the company is 6, which means that the company generated $6 in revenue for every $1 of working capital it had on average during the year. This indicates that the company is using its working capital efficiently to generate revenue and that it has a strong ability to generate sales from its current assets. A high working capital turnover ratio is generally considered a positive sign for investors and creditors, as it suggests that the company is effectively using its assets to generate revenue and that it has a lower risk of financial distress.

Rajesh Ameta
من قبل Rajesh Ameta , Accounts And Finance Manager , Ameta & Associates

Net Sales for the year $ 24,00,000 / Avg Wrokign capital $ 4,00,000 = Working capital turnover ratio 6 

Mohammed Mujahedullah Shareef
من قبل Mohammed Mujahedullah Shareef , Facilities coordinator , Al Osool Group LLC

The working capital turnover ratio is calculated as follows:

Working Capital Turnover Ratio = Net Sales / Average Working Capital

Using the figures provided, we have:

Net Sales = $2,400,000 Average Working Capital = $400,000

Plugging these values into the formula, we get:

Working Capital Turnover Ratio = $2,400,000 / $400,000 Working Capital Turnover Ratio = 6

Therefore, the working capital turnover ratio for the company is 6. Answer (a) is correct.

Mohamed Nawshad
من قبل Mohamed Nawshad , Desktop Support Engineer , Zoom

Net Annual sale devided by Average amount of working capitel.

So Answer is Option A.

SHAHNAWAZ NAZEER  KHAN
من قبل SHAHNAWAZ NAZEER KHAN , Accounts Receivable Officer , M R TRAVEL

its working capital turnover ratio be 4.5

Rajesh Babu Hejmadi
من قبل Rajesh Babu Hejmadi , Senior Accountant , Union Africaine De Commerce- Democratic Republic of Congo

Answer will be 6, net sales--$ 2,400,000 / $ 400,000 average working capital =6 wil be the Working Capital Turn Over Ratio.

Belhadj Amira
من قبل Belhadj Amira , Senior Medical Assistant , وزارة الصحة بتونس

Working Capital Turnover Ratio = Net Sales / Average Working Capital

Given the information provided: Net Sales = $2,400,000 Average Working Capital = $400,000

Plugging these values into the formula: Working Capital Turnover Ratio = $2,400,000 / $400,000 Working Capital Turnover Ratio = 6

Therefore, the working capital turnover ratio for the company is 6. Hence, the correct answer is a) 6.

المزيد من الأسئلة المماثلة