Calculate gross profit ratio: Avg stock = Rs 15,000 ; stock turnover ratio = 5 times ; selling - Accountancy - Accounting Ratios

Question

Calculate gross profit ratio:
Avg stock = Rs 15,000 ; stock turnover ratio = 5 times ; selling
price = 125% of the cost

Shadab Nawaz · Accepted Answer

stock turnover ratio = cost of good sold / average stock
5 = cost of good sold / 15000 = 75000
selling price = 75000 + 125% of the cost
= 75000 + 93750
= 168750
gross profit ratio = gross profit / net sales x 100
93750 / 168750 x 100 = 55 56 %

Calculate gross profit ratio: Avg. stock = Rs. 15,000 ; stock turnover ratio = 5 times ; selling price = 125% of the cost.

Calculate gross profit ratio:

Avg. stock = Rs. 15,000 ; stock turnover ratio = 5 times ; selling price = 125% of the cost.