Calculate the Trade receivables turnover ratio from the following information:
`{:(,,,RS.),("Total Revenue from operations",,,4_(,)00_(,)000),("Cash Revenue from operations",,,20%"of Total Revenue from operations"),("Trade receivables as at 1.4.2016",,,40_(,)000),("Trade receivables as at 31.3.2017" ,,,1_(,)20_(,)000):}`

Explanation

Trade Receivables Turnover Ratio `= ("Net Credit Revenue from Operations")/("Average Trade Receivables")`
Credit Revenue from operations = Total revenue from operations – Cash revenue from operations
Cash Revenue from operations `= 20%` of Rs. 4,00,000
= Rs. 4,00,000 `xx(20)/(100)` = Rs. 80,000
Credit Revenue from operations = Rs. 4,00,000 – Rs. 80,000 = Rs. 3,20,000