Question

From the following details you are required to ascertain

net profit and calculate net profit ratio.

Sales 5,40,000

Sales returns 40,000

Gross Profit 3,00,000

Income from investments 40,000

Loss on sale of Machinery 30,000

Operating expenses 1,20,000

Provision for tax 50,000​

Answer 1

Page No 4.100:

Question 80:

Calculate Inventory Turnover Ratio in each of the following alternative cases:

Case 1: Cash Sales 25% of Credit Sales; Credit Sales ₹3,00,000; Gross Profit 20% on Revenue from Operations, i.e., Net Sales; Closing Inventory ₹1,60,000; Opening Inventory ₹40,000.

Case 2: Cash Sales 20% of Total Sales; Credit Sales ₹4,50,000; Gross Profit 25% on Cost; Opening Inventory ₹37,500;