13.ACTIVITY TURNOVER RATIOS: TRADE RECEIVABLES TURNOVER RATIO, TRADE PAYABLES TURNOVER RATIO, WORKING CAPITAL TURNOVER RATIO : ASSIGNMENT # 9

LEARNING OUTCOMES:

INTRODUCTION

STUDENTS WILL BE ABLE TO:

COMPUTE, SOLVE AND CALCULATE

TRADE RECEIVABLES TURNOVER RATIO
TRADE PAYABLES TURNOVER RATIO
WORKING CAPITAL TURNOVER RATIO


(HEAR THE INSTRUCTIONS BEFORE YOU START)

          ⬇️

 INTRODUCTION  



TASK 

ASSIGNMENT# 9

QUESTION 1 WITH INSTRUCTIONS   HEAR THE AUDIO

Calculate Trade receivables turnover ratio..
Revenue from operations             500000
Cash Revenue from operations = 331/3% of credit revenue from operations

Additional information:
                                                    31 3 2020                     31-3-2019
Debtors                                           50000                           60000
Bills receivable                             10,000                           30,000

Ans 75000, 5 times

QUESTION 2 WITH INSTRUCTIONS    HEAR THE AUDIO

A company earns gross profit of 25% on cost. For the year ended 31st march 2020 its gross profit was 500000 ,

 Equity share capital of the company was 1000000,

 Reserves and surplus 200000,

 Long term loan 300000 and

 Non current assets were 1000000.

Compute the working capital turnover ratio of the company.

Ans5 times

CONCLUDING NOTE:  PROFITABILITY RATIOS WILL BE TAKEN NEXT.