A) 3 times
B) 2 times
C) 4 times
D) 8 times
Correct Answer: A
Solution :
| [a] 3 times |
| Hint: Working Capital Turnover Ratio=\[\frac{Cost of Revenue from Operations}{Working Capital}\] |
| Current Ratio = \[\frac{Current Assets}{Current Liabilities}\] |
| \[\frac{2}{1}\]= \[\frac{1,60,000}{Current Liabilities}\] |
| Current Liabilities = Rs. 80,000 |
| Working Capital = Current Assets - Current Liabilities |
| = 1,60,000 - 80,000 = Rs. 80,000 |
| Working capital turnover ratio = \[\frac{2,40,000}{80,000}\]=3 times |
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