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Question
Calculate Operating Ratio from the following information:
Operating Cost ₹ 6,80,000; Gross Profit 25%; Operating Expenses ₹ 80,000.
Solution
Given:
Operating Cost=Rs 6,80,000
Operating Expenses=Rs 80,000
Gross Profit Ratio=25%
Find out: Operating Ratio
Operating Cost=Cost of Revenue from Operations+Operating Expenses
6,80,000=Cost of Revenue from Operations+80,000
Cost of Revenue from Operations=Rs 6,00,000
Gross Profit =`1/4`th of Sales = `1/3`rd of cost
Gross Profit = `1/3 xx 600000` = Rs 200000
Gross Profit Ratio= `"Gross Profit"/"Net Sales" xx 100`
`25 = 200000/"Net Sales" xx 100`
Net Sales = RS 800000
Operating Ratio = `"Operating Cost "/"Net sales" xx 100`
`680000/800000 xx 100 = 85 %`
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|
Particulars |
₹ |
Particulars |
₹ | ||
|
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50,00,000 |
Share Capital |
35,00,000 | ||
|
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| Cash and Cash Equivalents | 5,00,000 | ||||
|
Investment (Trade) |
1,00,000 |
|
|||
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| ₹ | ||
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31.3.2018 (₹) |
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