1.

Closing Trade Receivables 90,000, Revenue from Operations 7,20,000, Cash Revenue from Operations1,80,000. Provision for Doubtful Debts 8,000. Calculate Trade Receivables Turnover Ratio.

Answer»

Trade receivable turnover ratio = Credit revenue from operation/ Average trade receivable

Trade receivable turnover ratio = 5,40,000/90,000 = 6 Times

Credit revenue from operations= Revenue from operations - Cash revenue from operation

5,40,000 = 7,20,000 – 1,80,000



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