Question : Revenue from Operations Rs. 9,00,000, Gross Profit 25% on Cost, Operating Expenses Rs. 90,000. Operating Ratio are
Option 1: 25%
Option 2: 30%
Option 3: 90%
Option 4: None of the above
Correct Answer: 90%
Solution : Answer = 90% Operating ratio=$\frac{\text {COGS+Op. Exp×100}}{\text {Net Sales}}$=$\frac{7,20,000+90,000}{9,00,000} \times 100$= $\frac{8,10,000}{9,00000} \times 100$= 90%. Cost of Goods Sold + G.P= Net Sales. ⇒$x+\frac{x}{4}$= 9,00,000 ⇒$\frac{5x}{4}$= 9,00,000 ⇒$x$= 9,00,000×$\frac{4}{5}$ ⇒$x$= 1,80,000×4=7,20,000. Cost of goods sold= 7,20,000. Hence, the correct option is 3.
Question : Revenue from Operations Rs. 8,00,000; Gross Profit Ratio 25%; Operating Ratio 90%; Nonoperating Expenses Rs. 4,000; Non-operating Income T44,000. Net Profit Ratio will be
Option 2: 20%
Option 3: 15%
Option 4: 5%
Question : Revenue from operations Rs. 6,80,000; Rate of Gross Profit on cost 25%; Selling expenses Rs. 1,44,000; Administrative expenses Rs. 73,000. The operating ratio will be
Option 1: 111.91%
Option 2: 100%
Option 3: 111%
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile