Calculate gross profit ratio, net profit ratio, stock turnover ratio,

1.	Calculate gross profit ratio, net profit ratio, stock turnover ratio, opening stock Rs. 1,00,000; Purchases Rs.3,50,000; Gross profit Rs.1,50,000; Net profit 90,000; Revenue from operations Rs.4,50,000; closing stock Rs. 1,50,000.
Answer» (a) Gross profit ratio = (Gross profit) / (Revenue form operations) x 100 Gross profit = Rs. 1,50,000. Revenue form operations = Rs. 4,50,000 \(\therefore\) Gross profit ratio = 1,50,000/4,50,000 x 100 = 33.33% (b) Net profit Ratio = (Net profit)/(Revenue form operations) x 100 = 90,000/4,50,000 x 100 = 20% (c) Stock turnover Ratio = (Cost of revenue form operations)/(Average inventory) Cost of revenue from operations = Revenue from operations – gross profit = 45,00,000 – 1,50,000 = Rs. 3,00,000 Average inventory = (Opening inventory + Closing inventry )/2 = (1,00,000 + 1,50,000)/2 = 2,50,000/2 = Rs. 1,25,000 \(\therefore\) invenrty turnover ratio = 3,00,000/1,25,000 = 2.4 times

Calculate gross profit ratio, net profit ratio, stock turnover ratio, opening stock Rs. 1,00,000; Purchases Rs.3,50,000; Gross profit Rs.1,50,000; Net profit 90,000; Revenue from operations Rs.4,50,000; closing stock Rs. 1,50,000.

Answer»

(a) Gross profit ratio = (Gross profit) / (Revenue form operations) x 100

Gross profit = Rs. 1,50,000.

Revenue form operations = Rs. 4,50,000

\(\therefore\) Gross profit ratio = 1,50,000/4,50,000 x 100

= 33.33%

(b) Net profit Ratio = (Net profit)/(Revenue form operations) x 100

= 90,000/4,50,000 x 100

= 20%

Cost of revenue from operations = Revenue from operations – gross profit

= 45,00,000 – 1,50,000

= Rs. 3,00,000

Average inventory = (Opening inventory + Closing inventry )/2

= (1,00,000 + 1,50,000)/2

= 2,50,000/2

= Rs. 1,25,000

\(\therefore\) invenrty turnover ratio = 3,00,000/1,25,000

= 2.4 times

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