Question 114 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 114 Chapter 4 of +2-B

Table of Contents

Operating Ratio

114. From the following information, calculate Operating Ratio:

	Rs.		Rs.
Cost of Revenue		Revenue from Operation:
from Operations Cost of Goods Sold	52,000	Gross Sales	88,000
Operating Expenses	18,000	Sales Return	8,000

Net Sales	=	Gross Sales – Sales Return
	=	Rs. 88,000 – Rs. 8,000
	=	Rs. 80,000
Operating Cost	=	Cost of Goods Sold + Operating Expenses
	=	Rs. 52,000 + Rs. 18,000
	=	Rs. 70,000

Operating Ratio	=	Operating Cost	X	100
		Net Sales

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of previous Chapters: –

Chapter No. 1 – Financial Statements of a Company
Chapter No. 2 – Financial Statement Analysis
Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
Chapter No. 4 – Accounting Ratios
Chapter No. 5 – Cash Flow Statement

Question 114 Chapter 4 of +2-B – T.S. Grewal 12 Class