Question 42 Chapter 7 -Unimax Publication Class 12 Part 2

Question 42 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

Table of Contents

42. From the following calculate working capital turnover ratio:

The solution of Question 42 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –

Net sales	=	cash sales + credit sales – returns
	=	4,50,000 + 2,50,000 – 50,000
Net sales	=	6,50,000
Working capital	=	current assets – current liabilities
Working capital	=	1,80,000 – 50,000
Working capital	=	1,30,000

Working capital turnover ratio	=	Net Sales
		working capital

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	=	6,50,000
	=	1,30,000
Working capital turnover ratio	=	5 : 1 or 5 times.

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Accounting Ratios – Meaning and Definition

Chapter No. 1 – Company Accounts (Share Capital)
Chapter No. 2 – Company Accounts (Issue of Debentures)
Chapter No. 3 – Company Accounts (Redemption of Debentures)
Chapter No. 4 – Financial Statements of a Company
Chapter No. 5 – Financial Statement Analysis
Chapter No. 6 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 7 – Ratio Analysis
Chapter No. 8 – Cash Flow Statement