Gross Profit at 25% on cost; Gross profit ₹ 5,00,000; Equity Share Capital ₹ 10,00,000; Reserves and Surplus 2,00,000; Long-term Loan 3,00,000; Fixed Assets (Net) ₹ 10,00,000. Calculate Working Capital Turnover Ratio

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Solution

Gross Profit = 25% on Cost
Let Cost be = Rs x

∴ Cost of Goods Sold = 20,00,000

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$\begin{matrix} Items & Rs. Paid - up Capital & 5, 00, 000 Curret Assets & 4, 00, 000 Net Sales & 10, 00, 000 13% Debentures & 2, 00, 000 Current Liability & 2, 80, 000 Cost of Goods Sold & 6, 00, 000 \end{matrix}$

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Gross Profit at 25% on cost; Gross profit ₹ 5,00,000; Equity Share Capital ₹ 10,00,000; Reserves and Surplus 2,00,000; Long-term Loan 3,00,000; Fixed Assets (Net) ₹ 10,00,000. Calculate Working Capital Turnover Ratio

Gross Profit = 25% on Cost Let Cost be = Rs x ∴ Cost of Goods Sold = 20,00,000

Gross Profit = 25% on Cost
Let Cost be = Rs x

∴ Cost of Goods Sold = 20,00,000