On the basis of following data a Company rsquo s Gross Profit Ratio will be Net Profit Rs 40 000 Off...........

General Accounting Principles Ratio analysis

On the basis of following data, a Company’s Gross Profit Ratio will be :

Net Profit Rs.40,000; Office Expenses Rs.20,000; Selling Expenses Rs.36,000; Total revenue from operations Rs.6,00,000.

16%

20%

6.67%

12.5%

Net Profit Rs.40,000; Office Expenses Rs.20,000; Selling Expenses Rs.36,000; Total revenue from operations Rs.6,00,000.

GROSS PROFIT = Net profit + office expenses + selling expenses

= Rs. 40,000 + Rs. 20,000 + Rs. 36,000

= Rs. 96,000

total revenue from operations = Rs. 6,00,000

gross profit ratio = gross profit / revenue from operation * 100

= Rs. 96,000 / Rs. 6,00,000 * 100

gross profit ratio= 16% (ANSWER)

By: Subhash Singh

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