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Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:
Trade Receivables Turnover Ratio 4 times
Current Liabilities ₹ 5,000
Average Debtors ₹ 1,80,000
Working Capital Turnover Ratio 8 times
Cash Revenue from Operations 25% of Revenue from Operations
Gross Profit Ratio
What is the revenue from operations?
  • a)
    ₹9,60,000
  • b)
    ₹6,40,000
  • c)
    ₹6,40,000
  • d)
    ₹7,20,000
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Read the following hypothetical extract of ABC Ltd. and answer the q...
Trade Receivables Turnover ratio
= Credit Revenue from Operations / Average Trade Receivables
4 = Credit Revenue from Operations / 1,80,000
Credit Revenue from Operations = ₹1,80,000 × 4 = ₹ 7,20,000
Credit Revenue from Operations = 75% of Revenue from Operations
₹7,20,000 = 75% of Revenue from Operations Revenue from Operations = ₹9,60,000
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Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What is the revenue from operations?a)₹9,60,000b)₹6,40,000c)₹6,40,000d)₹7,20,000Correct answer is option 'A'. Can you explain this answer?
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Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What is the revenue from operations?a)₹9,60,000b)₹6,40,000c)₹6,40,000d)₹7,20,000Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What is the revenue from operations?a)₹9,60,000b)₹6,40,000c)₹6,40,000d)₹7,20,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What is the revenue from operations?a)₹9,60,000b)₹6,40,000c)₹6,40,000d)₹7,20,000Correct answer is option 'A'. Can you explain this answer?.
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