Question

calculate gross profit ratio.... cash sales 25% of total sales, purchase 2,70,000, credit sales 2,40,000, excess of closing inventory over opening inventory 20000​

Answer 1

Answer: gross profit = gross profit / sales × 100

                                 = 70000/ 320000 ×100

                                = 21.875 %

Explanation: calculation of total sales ;-------------

  let the total sales is x

total sales = cash sales + credit sales

x  =  0.25 x  + 240000

x =  320000

GP = SALES - COGS

     =320000-250000 = 70000

COGS = opening inventory + purchase- closing inventory

         =   270000 - 20000

      =  250000