calculate Gross profit ratio:
cash Revenue from operations (cash sales : 25% of total
Revenue from openations (Total sales) Purchase 2270,000
Credit Revenue from operations (eredit sales) 22540,000 Rxcess
of closing Inventory over opening
• Over opening inventony 220.000
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Answer: gross profit ratio = gross profit / sales ×100
= 28003333/ 30053333×100
= 93.178%
Explanation: calculating of total sale ;----
let the total sales is x
total sale = credit sale + cash sale
x = 22540000 + 0.25x
x - 0.25 x = 22540000
x = 30053333
GP = sales - COGS
COGS = opening inventory + purchase - closing inventory
= 2270000- 220000
= 2050000
GP = SALES - COGS
= 30053333 - 2050000
= 28003333
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