working capital turnover ratio class 12

Working Capital 90000. I Operating profit ratio.

Working Capital Turnover Ratios Universal Cpa Review

Working capital turnover ratio 1850000370000.

. Working capital turnover ratiocost of revenue from operations or revenue from operations i. This concludes our article on the topic of Working Capital Turnover Ratio which is an important topic in Class 12 Accountancy for. When inventory and current assets given Ratio Analysis Class 12 Example 10.

Say that Company A has 12 million in net sales over the previous. From the following information calculate. Working capital turnover ratio 5 Times.

Working Capital is 90000. Working Capital Current assets - Current liabilities 600000 900000 - Current liabilities Current liabilities 300000. Ans d What will be the current ratio of a company whose net working capital is Zero.

Better communication of efficiency and weakness of an enterprise result in better co-ordination in the enterprise 5. A 11 b 0 c 15 b Cant say. Current Ratio is 351.

When inventory and current assets given Ratio Analysis Class 12 Example 10. 60000Calculate net credit revenue from operations. Accounting Ratios CBSE Notes for Class 12 Accountancy Topic 1.

It is a relationship between working capital and revenue from operations. Ratio It is an arithmetical expression of relationship between two related or interdependent items. Revenue from the operation for the year were RS.

Calculate the amount of Current Assets and Current Liabilities. Ratios even help in co-ordination which is of at most importance in effective business management. The ratio of working capital turnover is determined by dividing net annual sales for the same 12-month period by the average sum of working capital current assets minus current liabilities.

Helps in control- Ratio analysis even helps in making effective control of businessThe. From the following information compute the current ratio. Compute the Working Capital Turnover Ratio of the company.

When ratios are calculated on. NCERT Solutions for Class 12 Commerce Accountancy Chapter 5 Accounting Ratios are provided. Students can refer to mcq questions for class 12 accounting ratios provided below.

Working capital turnover is a ratio comparing the depletion of working capital to the generation of sales over a given period. Working capital Turnover ratio Net Sales Working Capital 420000 60000 7. Putting the values in the formula of working capital turnover ratio we get.

Net sales Beginning working capital Ending working capital 2 Example of the Working Capital. It reflects relationship between revenue from operations and net assets capital employed in the business. I Compute debtors turnover ratio from the following information Revenue from operations Total sales Rs 520000 cash revenue from operations 60 of the credit revenue from operations closing debtors Rs 80000 opening debtors are 34th of closing debtors.

MCQ Questions for Class 12 Accounting Ratios. Trade receivable turnover ratio 5 times average trade receivables Rs. 200000 and general reserve Rs.

This concludes our article on the topic of Working Capital Turnover Ratio which is an important topic in Class 12 Accountancy for. This means that for every 1 spent on the business it is providing net sales of 7. 700000 Working Capital Turnover Ratio 56 times So the Working Capital Turnover Ratio is 56 times.

Meaning of Working Capital Turnover Ratio. Working capital turnover ratio Turnover ratio Class 12 Part-12Trade Payable Turnover Ratio Class 12 Accountancy Part-11 Session 2021-22httpsy. The working capital of a company is the difference between the current assets and current liabilities of a company.

Accounting Ratios It is a mathematical expression that shows the relationship between various items or groups of items shown in financial statements. 100000 and total assets RS 2100000. Working capital turnover ratio Classification of Ratios Question 12.

The working capital turnover ratio is thus 12000000 2000000 60. And if Working capital turnover ratio Ans. We now look at the meaning and characteristics of working capital turnover ratio as mentioned in the chapter on accounting ratios class 12.

1 or 25 Current Liabilities 90000. Current Ratio 900000300000. Say that Company A has 12 million in net sales over the previous 12 months.

From the following information calculate the working capital turnover ratio. 12 00000. The best app for CBSE students now provides accounting for partnership firms fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations.

The working capital turnover ratio is thus 12000000 2000000 60. Working capital turnover ratio 5 Times. Read below DK Goel Solutions for Class 12 Chapter 5 Accounting RatiosThese solutions have been designed based on the latest Class 12 DK Goel Accountancy book used by commerce stream students issued for the current year and the questions given in each chapter.

Compute Gross Profit Ratio from the following information. If share capital Rs. Or Current Assets 35 Current Liabilities 1 Working Capital Current Assets Current Liabilities.

Accounting Ratios class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. Trade Payable Turnover Ratio Purchases Average Trade Payables Purchases Creditors Bills payable 420000 90000 52000 420000 142000 296 times d Working Capital Turnover Ratio. Current Ratio 3 1 Workings.

It shows the number of times a unit of Rupee invested in working capital produces sales. Exercise Q 103 Page 104. Current assets cash bank trade receivable current assets 200000 300000 50000 current assets 550000 Let cost of goods sold be 100.

500000 reserve surplus Rs. A Inventory turnover ratio and working capital turnover ratio b Liquid Ratio and Operating Ratio c Liquid Ratio and Current Ratio d Gross Profit Margin and Net Profit Margin.

Working Capital Turnover Ratio Different Examples With Advantages