154 :- Calculate Operating Profit Ratio from the following Information :
Solution :-
Cost of Goods Sold = Opening Inventory + Purchase – Closing Inventory
= 1,00,000 + 10,00,000 – 1,50,000
= Rs 9,50,000
Gross Profit = Revenue from Operations – Cost of Goods Sold
= 14,70,000 – 9,50,000
= Rs 5,20,000
Operating Profit = Gross Profit – Administrative and Selling Expenses
= 5,20,000 – 1,70,000
= Rs 3,50,000
Operating Profit Ratio = Operating Profit/Revenue from Operation x 100
= 3,50,000/14,70,000 x 100
= 23.81%