The following information is given about a company:
(i) Closing trade receivables = ₹10,000
(ii) Cash sales are 20% of credit sales.
(iii) Excess of closing trade receivables over opening = ₹4,000
(iv) Revenue from operations or sales = ₹60,000
Calculate Receivables turnover ratio or debtors turnover ratio.
1
6.25 times
2
7.25 times
3
8.25 times
4
None of these