from the following information calculate gross profit ratio, working capital turn over ratio,proprietory ratio
paid up capital 800000
current assets 500000
credit sales 300000
cash sales 75% credit sale
9% debentures 340000
cost of goods sold 680000

Question

from the following information calculate gross profit ratio,
working capital turn over ratio,proprietory ratio
paid up capital 800000
current assets 500000
credit sales 300000
cash sales 75% credit sale
9% debentures 340000
cost of goods sold 680000

Jayati Jawa · Accepted Answer

Dear Student

Gross Profit Ratio = Gross ProfitNet Sales×100

Net Sales = Cash Sales + Credit SalesCredit Sales = 3,00,000Cash Sales = 75% of Credit Sales = 75100×3,00,000=2,25,000Net Sales = 3,00,000 + 2,25,000 = 5,25,000

Gross Profit = Net Sales - Cost of Goods Sold
Gross Profit = 5,25,000 - 6,80,000 = (1,55,000) Loss

Since the company has incurred loss, Gross Loss Ratio will be
calculated

Gross Loss Ratio = Gross LossNet Sales×100                               = 1,55,0005,25,000×100=29
52%

Hope this answers your query!
Keep posting!!

from the following information calculate gross profit ratio, working capital turn over ratio,proprietory ratiopaid up capital 800000current assets 500000credit sales 300000 cash sales 75% credit sale9% debentures 340000cost of goods sold 680000

from the following information calculate gross profit ratio, working capital turn over ratio,proprietory ratio
paid up capital 800000
current assets 500000
credit sales 300000
cash sales 75% credit sale
9% debentures 340000
cost of goods sold 680000