2. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio.RO 200,000RO 20,000SalesRO 300,000RO 60,000Cost of salesNet profitSales Returns3. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio.Sales returnsClosing stockPurchasesRO 25,000RO 25,000RO 140,000RO 20,000SalesRO 320,000RO 70,000Opening stockDirect expensesNet profitRO 40,000RO 80,000Purchase returns4. From the following data, calculate (a) Gross profit ratio (b) Net profit ratioRO 50,000 PurchasesRO 5,000RO 3,000RO 35,000RO 1,500RO 2,000SalesOpening stockClosing stockSelling expensesAdministration expenses5. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio(c) Return on capital employedOpening stockPurchasesSalesRO 80,000RO 13,000RO 15,000RO 40,000Closing stockDistribution expenses RO 12,000Capital employedAdministration expRO 8,000RO 95,0006. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio(c) Return on capital employed.SalesRO 300,000RO 70,000RO 40,000RO 40,000Sales returnsRO 10,000RO 25,000RO 140,000RO 100,000RO 50,000Closing stockPurchasesOpening stockDirect expensesNet profitReserve and Surplus RO 25,000Share CapitalLong term Loans Profitability Ratios:1. Following is the profit and loss account of a limited companyOpening Stock10,000 Sales50,000 Closing Stock50,00090,00020,000PurchasesGross profit c/d110,000110,000Administration ExpensesSelling and Distribution ExpensesGross profit b/d6,0004,00050,000Net Profit40,00050,00050,000Calculate: Gross profit ratio, Net profit ratio

As posted multiple independent questions we are answering only first question kindly repost the…

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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 53CE: Profitability Ratios The following data came from the financial statements of Israel Company:...

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