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Green & co. showed it's net sales for a recent year Rs 1,800,000 and its average amount of working capital during the year was Rs.400,000?

its working capital turnover ratio will be :

a)5.25

b)0.222

c)4.5

d) None of the above

Accounting Capital Projects Fund Accounting Economics Finance
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Question added by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date Posted: 2015/07/16
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SIRAJUDHEEN KOTTAMBARA
by SIRAJUDHEEN KOTTAMBARA , Financial Internal Auditor , Sharjah Electricity, Water and Gas Authority

Working Capital Turnover = Net Annual Sales / Average Working Capital

                                      = $ 1,800,000 / $ 400,000

                                      = 4.5

Anthony Mark Dixon
by Anthony Mark Dixon , Finance and Administration Co-ordinator , Rhema

a) 4.5 as R1800000 devided by R400000 is 4.25.

Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

working capital turnover ratio = net sales during the year :average working capital during the year

Answer is option (C)4.5

Emmanuel anyedina
by Emmanuel anyedina , Lecturer

youtube.com/cost accountingtutorials

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