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Current assets of Smart Inc. are $94,700. Accounts payable is $36,200, net income is $12,400 and...

Current assets of Smart Inc. are $94,700. Accounts payable is $36,200, net income is $12,400 and sales are $110,800. What is the Net Working Capital Turnover Rate for Smart Inc.?

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Answer #1

Working Capital = Current Assets - Accounts Payable

= $ 94,700 - $ 36,200

= $ 58,500

Net Working Capital Turnover Rate = Sales /Working Capital

= $ 110,800 / $ 58,500

= 1.89

Answer : 1.89

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