Question

From the following details Calculate:

(a) Gross profit ratio

(b) Net profit ratio and

(c) Operating profit ratio.

Rs.

Sales 1,00,000

Dividend received 400

Gross profit 30,000

Administration expenses 1,000

Selling expenses 2,000

Depreciation 600

Loss on sale of plant 200

Net profit 26,600​

Answer 1

Answer:

Gross profit Ratio = gross profit / net sales *100

= 30000/100000*100=30%

Net profit Ratio = net profit / net sales *100

= 26600/100000*100= 26.6%

operating profit Ratio = operating profit /netsales *100

operating profit = net profit + non operating expenses - non operating income

Loss on sale of plant is non operating expenses

dividend received is non operating income

so operating profit is = 26600+200-400

= 26400

Operating profit eatio = 26400/100000*100= 26.4%