Current assets Rs 1200000, current liabilites Rs 240000, slaes credit Rs 2400000 and cash Rs 520000, sales Return Rs 40000, calcualte working capital turnover ratio from the above information.

Explanation

woking capital trunover ratio =`("revenue from operations i.e net sales")/("working capital")`
`=(Rs 2880000)/(Rs 960000)=3 Times`
Revenue from opperations i.e net sales
=cash sales +credit sales -sales return
=Rs 520000+Rs 240000-Rs 40000=Rs 2880000
working capital =current assets =current liablilities
=Rs 120000-Rs 240000=Rs 960000.