Ratio analysis

General Accounting Principles

Title

45:30

8 of 24 completed

5 of 15 completed

38 of 100 completed

8 of 20 completed

Indian Economy - Understanding the basics of Indian economic system

Revenue from Operations Rs 6,00,000; Gross Profit 20%; Office Expenses Rs 30,000; Selling Expenses Rs Rs 48,000. Calculate operating ratio

80%

85%

96.33%

93%

GIVEN: Revenue from Operations Rs 6,00,000; Gross Profit 20%; Office Expenses Rs 30,000; Selling Expenses Rs Rs 48,000

gross profit = revenue from operations * 20%

= Rs. 6,00,000 * 20/100 = Rs. 1,20,000

cost of revenue from operations = revenue from operations - gross profit

= Rs. 6,000,000- Rs. 1,20,000

= Rs. 4,80,000

operating expenses = office expenses + selling expenses

= Rs.30,000 + Rs. 48,000

= Rs. 78,000

operating ratio = cost of revenue from operation + operating expenses * 100

revenue from operations

= Rs. 4,80,000 + Rs. 78,000 * 100

Rs. 6,00,000

= 93%