Question

opening stock 50000,net profit 75000, operating ratio 85%,gross profit ratio 25%,stock turnover ratio 8 times, find closing stock

Answer 1

Answer:

Explanation:

operating profit  ratio=(operating profit/revenue from operation)100

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

operating profit=75000

85=(75000/RFO)*100

RFO=100000

gross profit ratio=(gross profit/RFO)100

25=(GP/100000)100

GROSS PROFIT =25000

cogs=RFO-GP

cogs=75000

stock turnover ratio =cost of goods sold(cogs)/average inventory

average inventory=75000/8=9375

average inventory=(opening stock +closing stock)/2

9375=(50000+closing)2

Answer 2

Answer:715000,

Explanation:85%=75000/RFO×100=

RFO=63750

25%=g/p/RFO×100=15937.5

cgs=63750-15937.5=47812.5

avg inventory=47812.5×8=382500

382500=50000+c/s/2

c/s=715000