Question 117 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 117 Chapter 4 of +2-B

Table of Contents

Operating Ratio

117. Calculate Operating Profit Ratio from the following information:

	Rs.		Rs.
Opening Inventory	1,00,000	Closing Inventory	1,50,000
Purchases	10,00,000	Loss by fire	20,000
Revenue from Operations, i.e., Net Sales	14,70,000	Dividend Received	30,000
Administrative and Selling Expenses	1,70,000

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Operating Cost	=	Rs. 1,70,000
Net Sales	=	Rs. 14,70,000
Cost of Goods Sold	=	Opening Inventory + Purchases – Closing Inventory
	=	Rs. 1,00,000 – Rs. 10,00,000 – Rs. 1,50,000
	=	Rs. 9,50,000
Operating Cost	=	Cost of Goods Sold + Operating Expenses
	=	Rs. 9,50,000 – Rs. 1,70,000 – Rs. 1,50,000
	=	Rs. 11,20,000

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: –

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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

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Question 117 Chapter 4 of +2-B – T.S. Grewal 12 Class