2
Question
Calculate following Operating Profit ratio from the following information:
Current Assets Rs.35,000
Stock Rs.15,000
Operating Expenses Rs.20,000
Sales Rs.60,000
Cost of Goods Sold Rs.30,000
Current Assets Rs.35,000
Stock Rs.15,000
Operating Expenses Rs.20,000
Sales Rs.60,000
Cost of Goods Sold Rs.30,000
Open in App
Solution
The correct option is C 16.67
Operating profit ratio of a company can be determined by comparing operating profit with the net sales. It shows the end of the management in running the business. It is calculated as:Operating Profit ratio = (Operating Profit/ Net Sales)x 100 = (Sales - operating expenses - cost of goods sold/ Net Sales) x 100 = (60,000-20,000-30,000/60,000)x100 = (10,000/60,000)x100 = 16.67%
Operating profit ratio of a company can be determined by comparing operating profit with the net sales. It shows the end of the management in running the business. It is calculated as:
Operating Profit ratio = (Operating Profit/ Net Sales)x 100
= (Sales - operating expenses - cost of goods sold/ Net
Sales) x 100
= (60,000-20,000-30,000/60,000)x100
= (10,000/60,000)x100 = 16.67%
Suggest Corrections
0
Similar questions