From the following information Calculate Working Capital Turnover Ratio Current Ratio - 2.5:1 Current Liabilities - 20,000 Revenue from Operation - 90,000
Options:
4.5 times
3 times
1.8 times
2 times
Correct Answer:
3 times
Explanation:
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