97 :- Calculate Trade Receivables Turnover Ratio from the following information :
Total sales Rs 1,00,000; Sales Return Rs 1,500; Cash Sales Rs 23,500.
Solution :-
Trade Receivables Turnover Ratio = Credit Revenue from Operations/Average Trade Receivables
= 75,000/37,500
= 2 Times
Credit Revenue from Operations = Total Sales – Sales Return – Cash Sales
= 1,00,000 – 1,500 – 23,500
= Rs 75,000
Average Trade Receivables = (Opening Balances of Debtors + Opening Balances of Bills Receivables + Closing Balances of Debtors + Closing Balances of Bills Receivables)/2
= (28,000 + 7,000 + 25,000 + 15,000)/2
= 75,000/2
= Rs 37,500