Question

Net sales is Rs. 300,000. Cost of goods sold is 240,000 calculate Gross profit Ratio​

Answer 1

Step-by-step explanation:

) Inventory ratio = Cost of goods sold / Average inventory

cost of goods sold = Net sales - Gross profit

= 400000 - 100000 = 300000

Average inventory = op. inventory + cl. inventory / 2

= 60000 + 90000 = 15000

so, Inventory ratio = 300000/ 15000 = 20 %

B) Gross profit ratio = Gross profit / Net sales x 100

= 100000/400000 x 100 =25%

Answer 2

Selling price is Rs. 3,00,000

Cost price is Rs. 2,40,000

That means profit is SP - CP = 60,000

Gross profit ratio is 60,000 / 2,40,000 = 0.25