152 :- (i) Cost of Revenue from Operations (Cost of Goods Sold) Rs 2,20,000; Revenue from Operations (Net Sales) Rs 3,20,000; Selling Expenses Rs 12,000; Office Expenses Rs 8,000; Depreciation Rs 6,000. Calculate Operating Ratio.
(ii) Revenue from Operations, Cash Sales Rs 4,00,000; Credit Sales Rs 1,00,000; Gross Profit Rs 1,00,000; Office and Selling Expenses Rs 50,000. Calculate Operating Ratio.
Solution :-
(i) Operating Cost = Cost of Revenue from Operations + Selling Expenses + Depreciation + Office Expenses
= 2,20,000 + 12,000 + 6,000 + 8,000
= Rs 2,46,000
Operating Ratio = (Operating Cost/Revenue from Operations) x 100
= (2,46,000/3,20,000) x 100
= 76.875%
(ii) Revenue from Operations = Cash Sales + Credit sales
= 4,00,000 + 1,00,000
= Rs 5,00,000
Cost of Goods Sold = Revenue from Operations – Gross Profit
= 5,00,000 – 1,00,000
= Rs 4,00,000
Operating Ratio = Cost of Goods Sold + Office and Selling Expenses/Revenue x 100
= (4,00,000 + 50,000)/5,00,000 x 100
= 4,50,000/5,00,000 x 100
= 90%