working capital turnover ratio class 12

It shows the number of times a unit of Rupee invested in working capital produces sales. From the following information calculate the working capital.

Working Capital Turnover Ratio Formula And Calculator

Accounting Ratios CBSE Notes for Class 12 Accountancy.

. Using TS Grewal Class 12 solutions Accounting Ratios exercise by students are an easy way to prepare for the exams as they involve solutions arranged chapter-wise also page wise. Calculate the Inventory turnover ratio from the following information. This concludes our article on the topic of Working Capital Turnover Ratio which is an important topic in Class 12.

This ratio is computed to determine how efficiently the working capital is utilised in making sales. What this means is that Company A was more efficient in generating Revenue by utilizing its working. Working capital turnover is a ratio comparing the depletion of working capital to the generation of sales over a given period.

Current ratioWorking capital ratio This ratio establishes relationship between current assets and current liabilities and is used to assess the short-term financial position of the business concern. Revenue from the operation for the year were RS. Company A 1800340 20x.

700000 Working Capital Turnover Ratio 56 times So the Working Capital Turnover Ratio is 56 times. This means that for every 1 spent on the business it is providing net sales of 7. This means that XYZ Companys working capital turnover ratio for the calendar year was 2.

Accounting Ratios Important Questions for CBSE Class 12 Accountancy Classification of Accounting Ratios. Stock turnover ratio or Inventory turnover ratio The ratio indicates the number. The formula to determine the companys working capital turnover ratio is as follows.

1 what will be the impact of following transactions. BYJUS Online learning Programs For K3 K10 K12 NEET. Working Capital turnover ratio Accounting Ratio Activity ratio class 12 Accounts video 110class 12 Accountsaccounting ratiosworking capital turnover.

Accounting Ratios class 12 Notes Accountancy chapter 14 in PDF format for free download. Calculate Working Capital Turnover Ratio from the following information. From the following information calculate the working capital turnover ratio.

Company B 2850 -180 -158x. Exercise Q 103 Page 104. Working Capital Turnover Ratio.

Compute working capital turnover ratio from the following information Cash revenue from operations Rs 130000 credit revenue from operations Rs 380000 sales returns Rs 10000 liquid assets Rs 140000 current liabilities Rs. Accounting Ratios Class 12 MCQs Questions with Answers. Accountancy Class 12 Important Questions and Answers are the best resource for students which helps in class 12 board exams.

Latest chapter Wise notes for CBSE board exams. It is a relationship between working capital and revenue from operations. We now look at the meaning and characteristics of working capital turnover ratio as mentioned in the chapter on accounting ratios class 12.

Accounting Ratios DK Goel Class 12 Accountancy Solutions. Meaning of Working Capital Turnover Ratio. Working capital turnover ratio Classification of Ratios Question 12.

Working Capital Turnover Ratio. Total assets turnover ratio 3 Times Working note 1. Working Capital Turnover ratio 2000000 1000000 2 times.

Inventory turnover ratio Ratio Analysis Class 12 Example 15. Ad Over 27000 video lessons and other resources youre guaranteed to find what you need. It reflects relationship between revenue from operations and net assets capital employed in the business.

Compute the Working Capital Turnover Ratio of the company. Here we are providing Class 12 Accountancy Important Extra Questions and Answers Chapter 10 Accounting Ratios. Class 12 Accounting Ratios MCQs Questions with Answers.

CBSE Previous Year Question Paper With Solution for Class 12 Commerce. A ratio of 2 is typically an indicator that the company can pay its current liabilities and still maintain its day-to-day operations. Say that Company A has 12.

It establishes the relationship between. Working capital turnover ratio Net Sales Average working capital. Trade Payable Turnover Ratio Purchases Average Trade Payables Purchases Creditors Bills payable d Working Capital Turnover Ratio.

Net sales Total sales - sales return 130000 380000 10000 500000. 150000 divided by 75000 2. Net Working Capital and.

The two basic measures of operational efficiency of a company are a Inventory Turnover Ratio and Working Capital Turnover Ratio b Liquid Ratio and Operating Ratio c Liquid Ratio and Current Ratio d Gross Profit Margin and Net Profit Margin. Working capital ratio and working capital turnover ratio c Debt equity ratio and proprietary ratio d Gross profit ratio and operating ratio. FREE NCERT Solutions for class 12 commerce Accountancy Chapter 5 - Accounting Ratios from NCERT Textbook Company Accounts And Analysis Of Financial Statements Ncert Solutions 2018.

NCERT Solutions for Class 12 Commerce Accountancy Chapter 5 Accounting Ratios are provided. Example of Working Capital Turnover. Multiple Choice Questions MCQs.

Now that we know all the values let us calculate the Working capital turnover ratio for both the companies. A From the following. Net Credit Sales 18 00000.

Working Capital Turnover Ratio Cost of Goods SoldWorking Capital 1000000200000 5 times. Total assets Inventories Cash Sundry debtors Land Plant Total assets 125000 400000 175000 400000 500000 Total assets 1600000. Average Collection Period 365 Trade Receivables Turnover Ratio 365 818 45 days.

CBSE Previous Year Question Paper With Solution for Class 12 Arts. Accounting Ratios ignore qualitative factors and are also not comparable if different firms follow different accounting policies. Debt equity Ratio is 05.

The questions involved in TS Grewal Solutions are. Working capital Turnover ratio Net salesWorking capital. It establishes the.

Putting the values in the formula of working capital turnover ratio we get. Working capital Turnover ratio Net Sales Working Capital 7. Working capital turnover ratio Turnover ratio Class 12.

Working Capital Inventory Turnover Accountingcoach