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Solution:

1.Gross Profit Ratio=Gross Profit/Net Sales*100

                        = 3,84,000/8,00,000*100

                        = 48%

2.Operating Profit Ratio = Operating profit/Net Sales*100

Operating profit=Sales-(Cost of Goods Sold(COGS)+ Operating Expenses)

·       COGS =Opening Stock + Purchase +Wages+ Carriage Inward-Closing Stock (60,000+4,20,000+28,000+8,000-1,00,000) =6,16,000

·       Operating expenses =Office and Selling & Distribution expenses (48,000+56,000) = 1,04,000

Hence, Operating profit = 80,000 (8,00,000-7,20,000)

                        Which is =80,000/8,00,000*100

                                    = 10%

3.Operating ratio = Cost of Goods Sold+ Operating Expenses/Net Sales*100

                        = (6,16,000+1,04,000) =7,20,000

                        Which is =7,20,000/8,00,000*100

                                    = 90%

4.Expenses Ratio = Operating Expenses/Net Sales*100

                        = 1,04,000/8,00,000*100

                        = 13%

5.Net Profit Ratio=Net Profit/Net Sales*100

                        = 2,81,200/8,00,000*100

                        =35,15%

                       

           

 

                       

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