From the following information calculate operating ratio :Particulars(

1.	From the following information calculate operating ratio :Particulars(₹)Particulars(₹)Non-operating other expenses35,000Income of interest-dividend45,000Depreciation48,000Sales expenses52,000Administrative expenses75,000Cost of goods sold3,25,000Sales6,00,000Financial expenses85,000Tax rate30%
Answer» Operating expense = Administrative expense + Sales expense + Depreciation = ₹ 75,000 + ₹ 52,000 + ₹ 48,000 = ₹ 1,75,000 \(operating\,ratio=\frac{cost\,of\,goods\,sold+operating\,system}{Net\,sales}\times100\) \(\frac{325000+175000}{600000}\times100=\frac{500000}{600000}\times100=83.33\%\)

From the following information calculate operating ratio :Particulars(₹)Particulars(₹)Non-operating other expenses35,000Income of interest-dividend45,000Depreciation48,000Sales expenses52,000Administrative expenses75,000Cost of goods sold3,25,000Sales6,00,000Financial expenses85,000Tax rate30%

Answer»

Operating expense = Administrative expense + Sales expense + Depreciation

= ₹ 75,000 + ₹ 52,000 + ₹ 48,000

= ₹ 1,75,000

\(operating\,ratio=\frac{cost\,of\,goods\,sold+operating\,system}{Net\,sales}\times100\)

\(\frac{325000+175000}{600000}\times100=\frac{500000}{600000}\times100=83.33\%\)