Question 118 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 118 Chapter 4 of +2-B

Table of Contents

Operating Ratio

118. Calculate Operating Profit Ratio from the Following:

	Rs.
Revenue from Operations, i.e., 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	500,000
Interest on Borrowings	5,000

Net Sales	=	Rs. 5,00,000
Cost of Goods Sold	=	Rs. 2,00,000
Operating Expenses	=	Rs. 50,000
Operating Cost	=	Cost of Goods Sold + Operating Expenses
	=	Rs. 2,00,000 + Rs. 50,000
	=	Rs. 2,50,000

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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

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Question 118 Chapter 4 of +2-B – T.S. Grewal 12 Class