Revenue from Operations, i.e., Net Sales ₹ 6,00,000. Calculate Net Profit Ratio.

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Solution

Net Sales = 6,00,000

Net profit = 60,000

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Q. Calculate Operating Profit Ratio,in each of the following alternative cases:
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Q. Closing Trade Receivables ₹ 1,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 40,000; Revenue from Operations, i.e., Net Sales ₹ 6,00,000. Calculate Trade Receivables Turnover Ratio.

Q. Calculate Inventory Turnover Ratio from the following information:
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Closing Trade Receivables ₹ 4,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 2,00,000; Revenue from Operations, i.e., Revenue from Operations, i.e., Net Sales ₹ 15,00,000. Calculate Trade Receivables Turnover Ratio

[Hint: 1. Net Credit Sales = Total Sales − Cash Sales

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Revenue from Operations, i.e., Net Sales ₹ 6,00,000. Calculate Net Profit Ratio.

Net Sales = 6,00,000 Net profit = 60,000

Net Sales = 6,00,000

Net profit = 60,000