Question 122 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 122 Chapter 4 of +2-B

Table of Contents

Operating Ratio

122. Operating Cost 3,40,000; Gross Profit Ratio 20%; Operating Expenses Rs.
20,000. Calculate Operating Profit Ratio.

Cost of Revenue from Operations	=	Operating Cost-Operating Expenses
	=	Rs. 3,40,000 – Rs. 20,000
	=	Rs. 3,20,000

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Revenue from Operations	=	Cost of Revenue from Operations + Gross Profit
	=	Rs. 3,20,000 – Rs. 80,000
	=	Rs. 4,00,000
Operating Profit	=	Revenue from Operations – Operating Cost
	=	Rs. 4,00,000 – Rs. 3,40,000
	=	Rs. 60,000

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

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Question 122 Chapter 4 of +2-B – T.S. Grewal 12 Class