Calculate Operating Ratio:Trading and Profit and Loss A/c of Kalpana f

1.	Calculate Operating Ratio:Trading and Profit and Loss A/c of Kalpana for the year ending 31st March 2019.Trading and Profit and Loss A/c
Answer» Cost of goods sold = Net sales – Gross profit = 7,70,000 – 3,90,000 = ₹ 3,80,000 Operating expenses = Adm. exp. + Selling and Distribution expenses = 50,000 + 60,000 = ₹ 1,10,000 Operating ratio = \(\frac{Cost\,of\,goods\,sold\,+\,Operating\,expense}{Net\,sales}\times100\) = \(\frac{3,80,000\,+\,1,10,000}{7,70,000}\times100\) = \(\frac{4,90,000}{7,70,000}\times100\) = 63.64%

Calculate Operating Ratio:Trading and Profit and Loss A/c of Kalpana for the year ending 31st March 2019.Trading and Profit and Loss A/c

Answer»

Cost of goods sold = Net sales – Gross profit

= 7,70,000 – 3,90,000

= ₹ 3,80,000

Operating expenses = Adm. exp. + Selling and Distribution expenses

= 50,000 + 60,000

= ₹ 1,10,000

Operating ratio = \(\frac{Cost\,of\,goods\,sold\,+\,Operating\,expense}{Net\,sales}\times100\)

= \(\frac{3,80,000\,+\,1,10,000}{7,70,000}\times100\)

= \(\frac{4,90,000}{7,70,000}\times100\)

= 63.64%