Solve the following:-

Dear Student,

Operating Profit = Opening Inventory+ Net Purchases+ Direct Expenses-Closing Inventory+Operating Expenses
= (-)300000+ 300000+ 15000
= 15000

Let total revenue from operations be xc
cash revenue from operations =(1/3)x
total revenue from operations=cash revenue+ credit revenue
x=(1/3)x + 450000
(2/3)x = 450000
x=675000

Operating Ratio=(Operating Profit/ Revenue from operations) ×100
=(15000/675000)×100
=2.22%

Regards