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Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.?
Most Upvoted Answer
Calculate working capital Turnover Ratio: Marketable securities Rs. 15...
Here, Working capital turnover ratio =
Sales ÷ Working capital
Current assets = 150000 + 50000 + 200000 + 50000 + 100000 + 50000
= 600000
Current liabilities = 30000 + 200000 + 20000
= 250000
Now, Working capital = Current assets - Current liabilities
= 600000 - 250000
= 350000
So, working capital turnover ratio =
= 2300000 ÷ 350000
= 6.57 times
Sales ÷ Working capital
Current assets = 150000 + 50000 + 200000 + 50000 + 100000 + 50000
= 600000
Current liabilities = 30000 + 200000 + 20000
= 250000
Now, Working capital = Current assets - Current liabilities
= 600000 - 250000
= 350000
So, working capital turnover ratio =
= 2300000 ÷ 350000
= 6.57 times
Community Answer
Calculate working capital Turnover Ratio: Marketable securities Rs. 15...
Working Capital Turnover Ratio Calculation
Step 1: Calculate the Total Current Assets
Marketable Securities + Stock + Sundry Debtors + Bills Receivable + Cash at Bank + Cash in Hand
= Rs. 150,000 + Rs. 50,000 + Rs. 200,000 + Rs. 50,000 + Rs. 100,000 + Rs. 50,000
= Rs. 600,000
Step 2: Calculate the Total Current Liabilities
Bills Payable + Sundry Creditors + Provision for Taxation
= Rs. 30,000 + Rs. 200,000 + Rs. 20,000
= Rs. 250,000
Step 3: Calculate the Working Capital
Working Capital = Total Current Assets - Total Current Liabilities
= Rs. 600,000 - Rs. 250,000
= Rs. 350,000
Step 4: Calculate the Sales
Sales = Rs. 23,00,000
Step 5: Calculate the Working Capital Turnover Ratio
Working Capital Turnover Ratio = Sales / Working Capital
= Rs. 23,00,000 / Rs. 350,000
= 6.57 times
Explanation
The working capital turnover ratio is a financial ratio that measures the efficiency of a company in utilizing its working capital to generate sales. It is calculated by dividing the net sales by the working capital.
In this case, we have calculated the working capital turnover ratio using the above formula. The total current assets have been calculated by adding the marketable securities, stock, sundry debtors, bills receivable, cash at bank, and cash in hand. The total current liabilities have been calculated by adding the bills payable, sundry creditors, and provision for taxation.
The working capital has been calculated by subtracting the total current liabilities from the total current assets. The sales for the period have been given as Rs. 23,00,000. Finally, the working capital turnover ratio has been calculated by dividing the sales by the working capital.
The working capital turnover ratio of 6.57 times indicates that the company is able to generate sales of Rs. 6.57 for every rupee of working capital. A high working capital turnover ratio indicates that the company is efficient in managing its working capital and generating sales.
Step 1: Calculate the Total Current Assets
Marketable Securities + Stock + Sundry Debtors + Bills Receivable + Cash at Bank + Cash in Hand
= Rs. 150,000 + Rs. 50,000 + Rs. 200,000 + Rs. 50,000 + Rs. 100,000 + Rs. 50,000
= Rs. 600,000
Step 2: Calculate the Total Current Liabilities
Bills Payable + Sundry Creditors + Provision for Taxation
= Rs. 30,000 + Rs. 200,000 + Rs. 20,000
= Rs. 250,000
Step 3: Calculate the Working Capital
Working Capital = Total Current Assets - Total Current Liabilities
= Rs. 600,000 - Rs. 250,000
= Rs. 350,000
Step 4: Calculate the Sales
Sales = Rs. 23,00,000
Step 5: Calculate the Working Capital Turnover Ratio
Working Capital Turnover Ratio = Sales / Working Capital
= Rs. 23,00,000 / Rs. 350,000
= 6.57 times
Explanation
The working capital turnover ratio is a financial ratio that measures the efficiency of a company in utilizing its working capital to generate sales. It is calculated by dividing the net sales by the working capital.
In this case, we have calculated the working capital turnover ratio using the above formula. The total current assets have been calculated by adding the marketable securities, stock, sundry debtors, bills receivable, cash at bank, and cash in hand. The total current liabilities have been calculated by adding the bills payable, sundry creditors, and provision for taxation.
The working capital has been calculated by subtracting the total current liabilities from the total current assets. The sales for the period have been given as Rs. 23,00,000. Finally, the working capital turnover ratio has been calculated by dividing the sales by the working capital.
The working capital turnover ratio of 6.57 times indicates that the company is able to generate sales of Rs. 6.57 for every rupee of working capital. A high working capital turnover ratio indicates that the company is efficient in managing its working capital and generating sales.
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Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.?
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Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.?.
Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.?.
Solutions for Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.? in English & in Hindi are available as part of our courses for B Com.
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Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.?, a detailed solution for Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.? has been provided alongside types of Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.? theory, EduRev gives you an
ample number of questions to practice Calculate working capital Turnover Ratio: Marketable securities Rs. 150,000; stock Rs. 50,000; Sundry Debtors Rs. 200,000 ; Bills Receivable Rs. 50,000; Cash at Bank Rs. 100,000; cash in hand Rs. 50,000; Bills payable Rs. 30,000; Sundry creditor Rs. 200,000; Provision for Taxation Rs. 20,000; Sales Rs. 23,00,000; Return inwards Rs. 200,000.? tests, examples and also practice B Com tests.
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