96 :- Credit Revenue from Operations,I.e., Net Credit Sales for the Year Rs 12,00,000
Debtors Rs 1,20,000
Bills Receivable Rs 80,000
Calculate Trade Receivables Turnover Ratio.
Solution :-
Trade Receivables Turnover Ratio = Credit Revenue from Operations I.e, Net Credit Sales/Average Trade Receivables
= 12,00,000/2,00,000
= 6 Times
Average Trade Receivables = Debtors + Bills Receivables/2
= 1,20,000 + 80,000
= Rs 2,00,000