Question

Calculate gross profit ratio
Purchase 590000

Opening inventory 70000

Closing inventory 60000

Revenue from operation net sale 720000​

Answer 1

Answer:

Gross profit ratio = 16.67 %

Explanation:

Given :

Purchase = 5,90,000

Opening inventory = 70,000

Closing inventory = 60,000

Revenue from operation Net Sale = 7,20,000

To find :

Calculate Goss profit ratio

Solution :

Gross profit ratio =

Gross Profit / Net Sales × 100

$\dfrac{Gross \: Profit}{Net \: Sales} \times 100$

Gross Profit = Net Sales - Cost of Good Sold

• Cost of Good Sold = Opening inventory + Purchase - Closing inventory

⇒ 70,000 + 5,90,000 - 60,000

⇒ 6,00,000

Cost of Good Sold = 6,00,000

• Gross Profit = Net Sales - Cost of Good Sold

⇒ Gross Profit = 7,20,000 - 6,00,000

⇒ 1,20,000

Gross Profit =1,20,000

• Gross profit ratio =

$\dfrac{Gross \: Profit}{Net \: Sales} \times 100$

⇒$\dfrac{1,20,000}{7,20,000} \times 100$

⇒ 16.67

Therefore,

Gross profit ratio = 16.67 %

Answer 2

$\Large\bf{\color{indigo}GiVeN,}$

• Purchase = Rs.590000

• Opening inventory = Rs.70000

• Closing inventory = Rs.60000

• Total Revenue or Net sales = Rs.720000

$\Large\bf{\color{cyan}To\:FiNd,}$

• Gross Profit Ratio.

$\Large\bf{\color{coral}CaLcUlAtIoN,}$

☆ Cost Of Goods Sold ;-

=》Opening inventory + Purchase - Closing inventory

=》70000 + 590000 - 60000

=》660000 - 60000

=》Rs.600,000

$\bf\pink{We\:know\:that,}$

$\red\bigstar\:\:\bf\purple{Gross\:Profit\:Ratio\:=\:\dfrac{Gross\:Profit}{Net\:sales}\times{100}\:}$

$:\longmapsto\:\:\bf{Gross\:Profit\:Ratio\:=\:\dfrac{(Total\:Revenue\:-\:Cost\:of\:goods\:sold)}{Net\:sales}\times{100}\:}$

$:\longmapsto\:\:\bf{Gross\:Profit\:Ratio\:=\:\dfrac{720000\:-\:600000}{720000}\times{100}\:}$

$:\longmapsto\:\:\bf{Gross\:Profit\:Ratio\:=\:\dfrac{120000}{7200}\:}$

$:\longmapsto\:\:\bf{Gross\:Profit\:Ratio\:=\:\dfrac{1200}{72}\:}$

$:\longmapsto\:\:\bf\green{Gross\:Profit\:Ratio\:=\:16.67\%\:}$

$\Large\bold\therefore$ Gross Profit Ratio is 16.67%.