Question 102 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 102 Chapter 4 of +2-B
Question No. 102- Chapter No.4 - T.S. Grewal +2 Book Part B


Question 102 Chapter 4 of +2-B


Working Capital Turnover

102. A company earns Gross Profit of 25% on cost. For the year ended 31st
March, 2017 its Gross Profit was Rs. 5,00,000; Equity Share Capital of the
company was Rs. 10,00,000; Reserves and Surplus Rs. 2,00,000; Long
term Loan 3,00,000 and Non-current Assets were 10,00,000.
Compute the ‘Working Capital Turnover Ratio’ of the company.

The solution of Question 102 Chapter 4 of +2-B: –

Gross Profit=25% on Cost
Cost of Goods sold=100
Gross Profit=25
Revenue from Operations=125
Revenue from Operations=Rs.5,00,000X125


Capital Employed=Shareholder’s Funds + Non- Current Liabilities
 =Rs. 10,00,000 + Rs. 2,00,000 + Rs. 3,00,000
 =Rs. 15,00,000
Working Capital=Capital Employed – Non- current Assets
 =Rs. 15,00,000 – Rs. 10,00,000
 =Rs. 5,00,000



Working Capital Turnover RatioNet Sales
Working Capital
 Rs. 25,00,000
Rs. 5,00,000
 =5 Times


Balance Sheet: Meaning, Format & Examples

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Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements



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