Calculate Operating Profit Ratio from the Following- Revenue from Operations Net Sales - Cost of Revenue from Operations Cost of Goods Sold 5-00-000- Wages 2-00-000- Office and Administrative Expenses 1-00-000- Interest on Borrowings 50-000- 5-000 -

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Standard XII

Accountancy

Need for Analysis of Financial Information

Calculate Ope...

Question

Calculate Operating Profit Ratio from the Following:

₹

Revenue from Operations (Net Sales) 5,00,000

Cost of Revenue from Operations (Cost of Goods Sold) 2,00,000

Wages 1,00,000

Office and Administrative Expenses 50,000

Interest on Borrowings 5,000

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Solution

Cost of Goods Sold = 2,00,000
Operating Expenses = Office and Administrative Expenses = 50,000
Operating Cost = Cost of Goods Sold + Operating Expenses
= 2,00,000 + 50,000 = 2,50,000
Net Sales = 5,00,000

Operating Profit Ratio = 100 – Operating Ratio = 100 – 50 = 50%

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	₹
Revenue from Operations (Net Sales)	5,00,000
Cost of Revenue from Operations (Cost of Goods Sold)	2,00,000
Wages	1,00,000
Office and Administrative Expenses	50,000
Interest on Borrowings	5,000

Calculate Operating Profit Ratio from the Following: ₹ Revenue from Operations (Net Sales) 5,00,000 Cost of Revenue from Operations (Cost of Goods Sold) 2,00,000 Wages 1,00,000 Office and Administrative Expenses 50,000 Interest on Borrowings 5,000

Cost of Goods Sold = 2,00,000 Operating Expenses = Office and Administrative Expenses = 50,000 Operating Cost = Cost of Goods Sold + Operating Expenses = 2,00,000 + 50,000 = 2,50,000 Net Sales = 5,00,000 Operating Profit Ratio = 100 – Operating Ratio = 100 – 50 = 50%

Calculate Operating Profit Ratio from the Following:

₹

Revenue from Operations (Net Sales) 5,00,000

Cost of Revenue from Operations (Cost of Goods Sold) 2,00,000

Wages 1,00,000

Office and Administrative Expenses 50,000

Interest on Borrowings 5,000

Cost of Goods Sold = 2,00,000
Operating Expenses = Office and Administrative Expenses = 50,000
Operating Cost = Cost of Goods Sold + Operating Expenses
= 2,00,000 + 50,000 = 2,50,000
Net Sales = 5,00,000

Operating Profit Ratio = 100 – Operating Ratio = 100 – 50 = 50%