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    Question

    NMO Inc has the following accounting information

    Current Assets at the beginning of a year = Rs 580

    Current Assets at the end of a year = Rs 620

    Current Liabilities at the beginning of a year = Rs 275

    Current Liabilities at the end of a year = Rs 325

    Revenue for the year is Rs 4000

    Calculate its working capital turnover ratio

    A 13.33 Correct Answer Incorrect Answer
    B 14.33 Correct Answer Incorrect Answer
    C 15.33 Correct Answer Incorrect Answer
    D 16.33 Correct Answer Incorrect Answer
    E 12.33 Correct Answer Incorrect Answer

    Solution

    Beginning WC = 580-275 = 305 Ending WC = 620-325 = 295 Average WC = (305+295)/2 = 300 WC Turnover = Revenue/Average WC = 4000/300 = 13.33

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