117 :- Revenue from Operations : Cash Sales Rs 5,00,000; Credit Sales Rs 6,00,000; Sales Return Rs 1,00,000. Current Assets Rs 3,00,000; Current Liabilities Rs 1,00,000. Calculate Working Capital Turnover Ratio.
Solution :-
Net Revenue from Operations = Cash Sales + Credit Sales – Sales Return
= 5,00,000 + 6,00,000 – 1,00,000
= Rs 10,00,000
Working Capital = Current Assets – Current Liabilities
= 3,00,000 – 1,00,000
= Rs 2,00,000
Working Capital Turnover Ratio = Revenue from Operations/Working Capital
= 10,00,000/2,00,000
= 5 Times