Question :
Calculate Operating ratio -
Particulars
Amount
Revenue from Operations
600000
Gross profit
20%
Office Expense
30000
Selling Expense
48000
Option 1: 80%
Option 2: 95.33%
Option 3: 85%
Option 4: 93%
Correct Answer: 93%
Solution : The operating ratio is calculated by dividing a company's total operating costs by its net sales.
Hence the operating ratio is -
Company total operating cost = Office exp. + Selling Exp. + Cost of goods sold
= Rs.[30000 + 48000 + 480000 (600000 - 20%)]
= Rs.558000
Total revenue from operation = Rs.600000
= Rs.558000/Rs.600000
= 93%
Hence the correct answer is option 4.
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Question : M & N were partners. They decided to dissolve their firm on 31st march 2022. The balance sheet of the firm is given below. M undertook to pay Mrs. M Loan and took over 40% of the stock and 70% of machinery at a discount of 15%.The Value at which asset is taken over by
Following is the extract From the
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