Question
126:
Calculate Operating Ratio from the following information:
Operating Cost
` 6,80,000; Gross Profit 25%; Operating Expenses `
80,000.
Answer:
Given:
Operating Cost=
` 6,80,000
Operating Expenses=
` 80,000
Gross Profit Ratio=25%
Find out: Operating Ratio
Operating Cost = Cost of Revenue from Operation+Operating Expenses 6,80,000=Cost of Revenue from Operations+80,000
Cost of Revenue from Operations=
` 6,00,000
Gross Profit=14th of sales=13rd of cost
Gross Profit=13×6,00,000= ` 2,00,000
Gross Profit Ratio=Gross Profit
Net Sales×100/25=2,00,000
Net Sales×100
Net Sales=
` 8,00,000
Operating Ratio=Operating Cost/Net Sales×100
=6,80,000/8,00,000×100
=85%
Question
127:
Calculate Operating Profit
Ratio from the following
Revenue from Operations (Net Sales) `5,00,000
Cost of Revenue from Operations (Cost of Goods Sold) `2,00,000
Wages `1,00,000
Office and Administrative Expenses `50,000
Interest on Borrowings `5,000
Answer:
Operating Profit= Sales – Cost of Goods Sold- Office and Administrative Expenses
Operating Profit=5,00,000-2,00,000-50,000
Operating Profit=2,50,000
Operating Profit Ratio=2,50,000×100/5,00,000 = 50%
Operating Profit Ratio = 50%
Question
128:
Calculate Operating Profit Ratio from the following
information:
|
Opening
Inventory |
`1,00,000 |
|
Closing
Inventory |
`1,50,000 |
|
Purchases |
` 10,00,000 |
|
Loss
by fire |
` 20,000 |
|
Revenue
from Operations, i.e., Net Sales |
` 14,70,000 |
|
Dividend
Received |
` 30,000 |
|
Administrative
and Selling Expenses |
` 1,70,000 |
|
|
|
Answer:
Cost of Goods Sold = Opening Inventory + Purchases –
Closing Inventory
= 1,00,000 + 10,00,000 – 1,50,000 = 9,50,000
Operating Expenses = Administrative and Selling Expenses = 1,70,000
Operating Cost = Cost of Goods Sold + Operating Expenses
=
9,50,000 + 1,70,000 = 11,20,000
Net Sales = 14,70,000
Operating Ratio= Operating Cost/ Net Sales ×100
=11,20,000/14,70,000× 100=76.19%
Operating Profit Ratio = 100 – Operating Ratio = 100 – 76.19 = 23.81%
Question
129:
Revenue from Operations ` 9,00,000; Gross Profit 25% on Cost; Operating Expenses ` 45,000. Calculate Operating Profit Ratio.
Answer:
|
Gross Profit |
= 9,00,000×25/125 =
` 1,80,000 |
|
Operating Profit |
=Gross Profit-Operating Expenses |
|
|
=1,80,000-45,000 =
` 1,35,000 |
|
Operating Profit Ratio |
=Operating Profit/Revenue from Operations×100 |
|
|
=1,35,000/9,00,000×100 |
|
|
=15%
|
Question
130:
Operating Cost ` 3,40,000; Gross Profit Ratio 20%; Operating Expenses ` 20,000. Calculate Operating Profit Ratio.
Answer:
|
Cost of Revenue from Operations |
=
Operating Cost-Operating Expenses =
3,40,000-20,000 =
` 3,20,000 |
|
Gross Profit |
= 3,20,000×20/80 =
` 80,000 |
|
Revenue from Operations |
=
Cost of Revenue from Operations + Gross Profit =
3,20,000+80,000 =
` 4,00,000 |
|
Operating Profit |
=
Revenue from Operations-Operating Cost =
4,00,000−3,40,000 =
` 60,000 |
|
Operating Profit Ratio |
=
Operating Profit/Revenue from Operations×100 =
60,000/4,00,000×100 =
15% |
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Ts Grewal Solution 2022-2023
Class 12 / Volume – 3
Chapter 4 – Accounting Ratios