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From the following information calculate (i) operating ratio and (ii) operating profit ratio:Particulars(₹)Particulars(₹)Sales39,00,000Wages2,00,000Cost of goods consumed25,00,000Administrative expenses1,75000Sales expenses75,000Interest on loan60,000Loss due to accident40,000Dividend received on investments1,00,000Factory expenses includingTax rate30%depreciation50,000 |
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Answer» Cost of goods sold = Cost of goods consumed + Wages = ₹ 25,00,000 + ₹ 2,00,000 = ₹ 27,00,000 Operating Expense = Administrative expense + Sales expense + Factory expenses (including depreciation) = ₹ 1,75,000 + ₹ 75,000 + ₹ 50,000 = ₹ 3,00,000 (i) Operating Ratio = img = \(\frac{27,00,000+3,00,000}{39,00,000}\times100\) = \(\frac{30,00,000}{39,00,000}\)= 76.92% Operating cost = Cost of goods sold + Operating expenses = ₹ 27,00,000 + ₹ 3,00,000 = ₹ 30,00,000 (ii) Operating Profit= Sales – Operating Cost = ₹ 39,00,000 – ₹ 30,00,000 = ₹ 9,00,000 Operating Profit Ratio = \(\frac{Operating\,profit}{Net\,sales}\times100\) =\(\frac{9,00,000}{39,00,000}\times100\) = 23.8% OR Operating Profit Ratio = 100% – Operating Ratio = 100 – 76.92 = 23.08% |
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