Page 378 - VIRANSH COACHING CLASSES

Gross Profit ` 5,60,000 (`)
Less : Administrative Expenses 1,60,000
Selling and Distribution Expenses 1,20,000
Interest on Debentures 80,000 3,60,000
Net Profit 2,00,000

Net Profit
Net Profit Ratio = × 100
Sales
2,00,000
= × 100 = 10%
20,00,000
10 : Operating Ratio Calculate Operating Ratio

Cost of goods sold ` 7,00,000
Operating Expenses ` 60,000
Sales ` 10,00,000
Sales Return ` 60,000
Cost of Goods Sold + Operating Expenses
Operating Ratio : = Net Sales × 100

Net Sales = Sales - Sales Return
= 10,00,000 - 60,000
= ` 9,40,000
7,00,000 + 60,000
= × 100 = 80.85%
9,40,000
.
11 : From the following details Calculate Operating Ratio
Sales ` 5,00,000
Sales Return ` 50,000
Opening stock ` 60,000
Purchases ` 2,20,000

Closing Stock ` 40,000
Office and Administrative Expenses ` 34,000

Selling and Distribution Expenses ` 36,000
Cost of Goods Sold + Operating Expenses
Operating Ratio = Net Sales × 100

Cost of goods sold = Opening Stock + Purchases - Closing Stock
= 60,000 + 2,20,000 - 40,000

= 2,40,000
Net Sales = Sales - Sales Return
= 5,00,000 - 50,000
= ` 4,50,000

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