calculate the gross profit ratio when cash sales :25% of total sales ; purchase RS 276000 credit sales RS 240000; excess of closing stock over opening stock : RS 20000

COGS = PURCHASES - EXCESS OF C.STOCK OVER O.STOCK.

COGS= 276000- 20000 = 256000.

LET the total sales be x

cash sales = 1/4 of x

total sales = cash sales + credit sales

x = 1/4 x + 240000.

3/4 x =240000

x= 320000

Gross profit = total sales - COGS = 320000-256000=64000.

Gross profit ratio = gross profit/ total sales x 100= 64000/320000 x 100 = 0.2 x 100 = 20 %

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