163 :- Revenue from Operations Rs 4,00,000; Gross Profit Ratio 25%; Operating Ratio 90%. Non – operating Expenses Rs 2,000; Non – operating Income Rs 22,000. Calculate Net Profit Ratio.
Solution :-
Gross Profit = 25% of Revenue from Operation
= 25/100 x 4,00,000
= 1,00,000
Cost of Goods Sold = Revenue from Operation – Gross Profit
= 4,00,000 – 1,00,000
= Rs 3,00,000
Operating Ratio = Cost of Goods Sold + Operating Expenses/Revenue from Operation x 100
90 = (3,00,000 + Operating Expenses/4,00,000) x 100
90 x 4,00,000/100 = 3,00,000 + Operating Expenses
3,60,000 = 3,00,000 + Operating Expenses
Operating Expenses = Rs 60,000
Net Profit = Gross Profit + Non – Operating Income – Operating Expenses – Non – Operating Expenses
= 1,00,000 + 22,000 – 60,000 – 2,000
= Rs 60,000
Net Profit Ratio = Net Profit/Revenue from Operation x 100
= 60,000/4,00,000 x 100
= 15%