From the following information Calculate Working Capital Turnover Ratio
Current Ratio - 2.5:1
Current Liabilities - 20,000
Revenue from Operation - 90,000
Answer & explanation
Correct answer: option 2
W.C.T.R = Revenue From Operation/ Working Capital
= 90,000/30,000
= 3 times
W.C = CA -CL
= 50,000 - 20,000
= 30000
CA = C L * 2.5
= 20,000*2.5
= 50,000