The following is the Profit & Loss Account of avita Private Ltd. for the year ending 31st December, 1986. $ 1,02,000 By Cash sales $ To Opening stock " Purchases 6,35,000 3,15,000 5,29,000 Credit sales 9,50,000 15,000 9,35,000 92,000 Returns 17,000 5,12,000 Returns Сarriage Wages 5,000 By Closing stock 55,000 Gross Profit 3,53,000 10,27,000 10,27,000 Administrative Expenses: 3,53,000 By Gross Profit Non-operating Income: Salaries 35,000 20,000 15,000 Rent Dividend on shares 3,500 To Depreciation Sundry exp. Selling and Distribution Profit on sale 5,000 of shares 8,500 85,000 exp: Advertising Salesmen's Salary & Commission 1,05,000 14,000 Other selling exps. Non-operating exps: Loss on sale of machinery To Net Profit 11,000 75,000 3,65,000 3,65,000 You are required to calculate: (1) Gross Profit Ratio (2) Operating Profit Ratio (3) Operating Ratio
The following is the Profit & Loss Account of avita Private Ltd. for the year ending 31st December, 1986. $ 1,02,000 By Cash sales $ To Opening stock " Purchases 6,35,000 3,15,000 5,29,000 Credit sales 9,50,000 15,000 9,35,000 92,000 Returns 17,000 5,12,000 Returns Сarriage Wages 5,000 By Closing stock 55,000 Gross Profit 3,53,000 10,27,000 10,27,000 Administrative Expenses: 3,53,000 By Gross Profit Non-operating Income: Salaries 35,000 20,000 15,000 Rent Dividend on shares 3,500 To Depreciation Sundry exp. Selling and Distribution Profit on sale 5,000 of shares 8,500 85,000 exp: Advertising Salesmen's Salary & Commission 1,05,000 14,000 Other selling exps. Non-operating exps: Loss on sale of machinery To Net Profit 11,000 75,000 3,65,000 3,65,000 You are required to calculate: (1) Gross Profit Ratio (2) Operating Profit Ratio (3) Operating 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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