1. Following is the profit and loss account of a limited companyOpening StockPurchasesGross profit c/d10,000 Sales50,000 Closing Stock50,00090,00020,000110,000110,000Administration ExpensesSelling and Distribution ExpensesGross profit b/d6,0004,00050,000Net Profit40,00050,00050,000Calculate: Gross profit ratio, Net profit ratio

Ratio analysis is referred as the quantitative method of understanding company’s liquidity,…

1. Following is the profit and loss account of a limited company Opening Stock Purchases Gross profit c/d 10,000 | Sales 50,000 Closing Stock 50,000 90,000 20,000 110,000 Administration Expenses Selling and Distribution Expenses 110,000 50,000 Gross profit b/d 6,000 4,000 Net Profit 40,000 50,000 50,000 Calculate: Gross profit ratio, Net profit ratio

1. Following is the profit and loss account of a limited company Opening Stock Purchases Gross profit c/d 10,000 | Sales 50,000 Closing Stock 50,000 90,000 20,000 110,000 Administration Expenses Selling and Distribution Expenses 110,000 50,000 Gross profit b/d 6,000 4,000 Net Profit 40,000 50,000 50,000 Calculate: Gross profit ratio, Net profit ratio

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.8E: Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of...

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