Question 74 Chapter 4 of +2-B - USHA Publication 12 Class

Question 74 Chapter 4 of +2-B

IV. Profitability Ratios

74. (Operating Profit Ratio) Operating cost (excluding operating exp.) ₹ 9,00,000 Gross Profit Ratio 20% Operating Expenses ₹ 50,000 Calculate Operating Profit Ratio.

The solution of Question 74 Chapter 4 of +2-B: –

(a) Operating Profit Ratio	=	₹ 1,75,000	X	100
(a) Operating Profit Ratio	=	₹ 11,25,000	X	100
	=	15.56%
Gross Profit	=	20% of Net Sales
Let assume sales	=	100
Gross Profit	=	20
Gross Profit	=	100	X	100
	=	800	X	100

	=	₹ 11,25,000

Total Operating Cost	=	Operating Cost + Operating Expenses
	=	₹ 9,00,000 + ₹ 50,000
	=	₹ 9,50,000
Operating Profit	=	Net Sales – Operating Cost
	=	₹ 11,25,000 – ₹ 9,50,000
	=	₹ 1,75,000

End of Solution

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Chapter No. 8 – Company Accounts (Share Capital)

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