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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
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.
The correct working capital Turnover ratio is a) 6
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.
I don't know the answer.
Net Sales for the year $ 24,00,000 / Avg Wrokign capital $ 4,00,000 = Working capital turnover ratio 6
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 / $400,000 Working Capital Turnover Ratio = 6
Therefore, the working capital turnover ratio for the company is 6. Answer (a) is correct.
Net Annual sale devided by Average amount of working capitel.
So Answer is Option A.
Answer will be 6, net sales--$ 2,400,000 / $ 400,000 average working capital =6 wil be the Working Capital Turn Over Ratio.
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.
