Question

calculate
gross profit ratio
return on total assets ratio
inventory turnover ratio and
working capital turnover ratio from the following
sales 25,20,000
net profit 3,60,000
fixed assets 14,40,000
current liabilities 6,00,000
cost of goods sold 19,20,000
current assets 7,60,000
inventory 8,00,000​

Answer 1

Answer:

1) Gross profit Ratio = 23.80%

2) Return on total Assets = 12%

3) Inventory turnover Ratio = 2.4 times

4) Working Capital turnover Ratio = 2.6 times or 2 times