Final Answer:
The required ratios are:
- a) Gross profit ratio = 40%
- b) Net profit ratio = 16%
- c) Operating profit ratio = 20%
Step-by-step explanation:
To calculate the required ratios, we need to use the given information:
- Sales: Rs. 5,00,000
- Cost of goods sold: Rs. 3,00,000
- Operating expenses: Rs. 1,00,000
- Non-operating expenses: Rs. 20,000
a) Gross profit ratio:
Gross profit is calculated by subtracting the cost of goods sold from sales.
Gross Profit = Sales - Cost of goods sold
Gross Profit = Rs. 5,00,000 - Rs. 3,00,000
Gross Profit = Rs. 2,00,000
Gross Profit Ratio = (Gross Profit / Sales) * 100
Gross Profit Ratio = (2,00,000 / 5,00,000) * 100
Gross Profit Ratio = 40%
b) Net profit ratio:
Net profit is calculated by subtracting both operating and non-operating expenses from the gross profit.
Net Profit = Gross Profit - Operating expenses - Non-operating expenses
Net Profit = Rs. 2,00,000 - Rs. 1,00,000 - Rs. 20,000
Net Profit = Rs. 80,000
Net Profit Ratio = (Net Profit / Sales) * 100
Net Profit Ratio = (80,000 / 5,00,000) * 100
Net Profit Ratio = 16%
c) Operating profit ratio:
Operating profit is calculated by subtracting only the operating expenses from the gross profit.
Operating Profit = Gross Profit - Operating expenses
Operating Profit = Rs. 2,00,000 - Rs. 1,00,000
Operating Profit = Rs. 1,00,000
Operating Profit Ratio = (Operating Profit / Sales) * 100
Operating Profit Ratio = (1,00,000 / 5,00,000) * 100
Operating Profit Ratio = 20%