working capital turnover ratio class 12

Working Note-Net Revenue from Operations Rs. FREE NCERT Solutions for class 12 commerce Accountancy Chapter 5 - Accounting Ratios from NCERT Textbook Company Accounts And Analysis Of Financial Statements Ncert Solutions 2018.

Working Capital Turnover Ratio Formula And Calculator

Iii Return on Investment.

. The working capital turnover ratio is thus 12000000 2000000 60. We now look at the meaning and characteristics of working capital turnover ratio as mentioned in the chapter on accounting ratios class 12. Net sales Total sales - sales return 130000 380000 10000 500000.

These are the Accounting Ratios class 12 Notes prepared by team of expert teachers. Net Credit Sales 18 00000. 700000 Working Capital Turnover Ratio 56 times So the Working Capital Turnover Ratio is 56 times.

We now look at the meaning and characteristics of working capital turnover ratio as mentioned in the chapter on accounting ratios class 12. It reflects relationship between revenue from operations and net assets capital employed in the business. The working capital turnover ratio is thus 12000000 2000000 60.

Trade Payable Turnover Ratio Purchases Average Trade Payables Purchases Creditors Bills payable d Working Capital Turnover Ratio. It is a relationship between working capital and revenue from operations. Profitability Ratios These ratios measure the profitability of a business.

Compute working capital turnover ratio from the following information Cash revenue from operations Rs 130000 credit revenue from operations Rs 380000 sales returns Rs 10000 liquid assets Rs 140000 current liabilities Rs. RD Sharma Class 11 Solutions Free PDF Download. It shows the number of times a unit of Rupee invested in working capital produces sales.

Working Capital Current Assets Current Liabilities 18 00000 5 00000 13 00000. Working capital turnover ratio Classification of Ratios Question 12. Revenue from the operation for the year were RS.

700000 Working Capital Turnover Ratio 56 times So the Working Capital Turnover Ratio is 56 times. The companys working capital is the difference between the current assets and current liabilities of a company. Revision notes in exam days is one of the best tips recommended by teachers during exam days.

It signifies how well a company is generating its sales concerning the working capital. Total Revenue from operations 500000 including cash revenue from operations 100000. Working Capital Turnover Ratio Formula Calculator Excel Template NCERT Solutions for Class 12 Commerce Accountancy Chapter 5 Accounting Ratios are provided.

This ratio is computed to determine how efficiently the working capital is utilised in making sales. Calculation of Working Capital Turnover Ratio-Working Capital Turnover Ratio Net Revenue from operations Working Capital Working Capital Turnover Ratio Rs. The formula for calculating this ratio is by dividing the companys sales by the companys working.

Debt equity Ratio is 05. This means that every dollar of working capital produces. Meaning of Working Capital Turnover Ratio.

Net Credit Sales 18 00000. Class 12 Accounting Ratios MCQs Questions with Answers. Working capital turnover ratio This ratio shows the number of times the working capital has been rotated in generating sales.

From the following information compute the current ratio. RD Sharma Class 10 Solutions. From the following information calculate the working capital turnover ratio.

Using TS Grewal Class 12 solutions Accounting Ratios exercise by students are an easy way to prepare for the exams as they involve solutions arranged chapter-wise also page wise. Working Capital Current assets - Current liabilities 600000 900000 - Current liabilities Current liabilities 300000. A From the following details calculate opening inventory.

Working capital turnover ratio 1850000370000. This concludes our article on the topic of Working Capital Turnover Ratio which is an important topic in Class 12 Accountancy for. The questions involved in TS Grewal Solutions are.

Working Capital Turnover ratio 2000000 1000000 2 times Question 7. Download revision notes for Accounting Ratios class 12 Notes and score high in exams. It establishes the.

Working capital Turnover ratio Net salesWorking capital. Current Ratio 900000300000. Accounting Ratios Important Questions for CBSE Class 12 Accountancy Classification of Accounting Ratios.

1 what will be the impact of following transactions. RD Sharma Class 9 Solutions. Revenue from the operation for the year were RS.

When inventory and current assets given Ratio Analysis Class 12 Example 10. From the following information calculate the following ratios. Trade Receivables Turnover Ratio.

Current Ratio 3 1 Workings. Working capital turnover ratio Turnover ratio Class 12. Exercise Q 103 Page 104.

The working capital turnover ratio is thus 12000000 2000000 60. The revision notes help you revise the whole chapter 14 in minutes. Working capital ratio and working capital turnover ratio c Debt equity ratio and proprietary ratio d Gross profit ratio and operating ratio.

Working Capital Turnover Ratio Formula. The working capital of a company is the difference between the current assets and current liabilities of a company. Working capital turnover ratio 5 Times.

Working Capital Turnover Ratio. Average Collection Period 365 Trade Receivables Turnover Ratio 365 818 45 days. RD Sharma Class 12 Solutions.

Compute the Working Capital Turnover Ratio of the company. Closing inventory 60000. Total purchases 300000 including credit purchases 60000.

Working capital turnover ratio 5 Times. Ii Inventory Turnover Ratio. Average Trade Receivables 9 00000.

The average working capital during that period was 2 million.

Dupont Analysis Definition Formula Equation