what is a gross profit ratio?

Answer Posted / yadav kuldeep

Gross Profit Ratio= (Gross profit /Net Sales)*100
Gross Profit = Net Sales - Cost of goods sale
Cost of goods sold = (Op. Stock + Purchase+ Direct exp.)-
Closing stock
Net sales= (Cash sales + Credit Sales)- Sales return

Is This Answer Correct ?    15 Yes 1 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What are the different branches of accounting?

613


What are the basic assumptions in accounting?

684


Please give me a suggession to calculate the T.D.S,E.S.I,P.F, From salary which is in gross Rs. 15000/.

1639


i WANT TO KNOW WHAT IS THE INTEREST RATE IF WE CAN NOT PAY THE DEPOSIT SALE TAX AMOUNT WITH IN PERIOD

1395


What do you mean by gaap in accounting?

626






Who created snapit accounting?

616


what is the entry for toll gate fee

7466


Where do we show "Dividend paid in FFS ,either in FFO or in FFS? what is teh concept behind?

1544


Explain what knowledge should financial accountant have?

630


Cheque Received From Customer What is accounting entry and in which vocher. coustomer order is 100 items . 5 items given to customer cost rs 2000 5 items Total 2000 and remaing 95 items not deliveried 100000 Cheque Received

1699


What are assets minus liabilities?

616


The following information is extracted from the audited books of accounts of a chain of food stores for the period ended 31st December 2015. Revenue Statement (Trading and Profit and Loss Account for the year ended 31st December 2015. BWP’000 BWP’000 Sales 460 Cost of good sold (220) Gross profit 240 Wages 50 Other expenses 30 (80) Net Profit 160 Note: The purchase figure included in the cost of goods sold of P255 000. Balance Sheet as at 31st December 2015 BWP’000 BWP’000 Fixed Assets 400 Current assets: Stock 80 Debtors (trade) 120 Bank 400 ----- [600] Current liabilities: Trade creditors 300 ------ [300] 300 Net Assets 700 ==== Financed by: Share capital 600 Revenue reserves 100 ------ 700 Shareholders Funds 700 ===== Required: (a) Calculate the following accounting ratios: (i) Current ratio (ii) Acid test ratio (iii) Stock turnover (in days) (iv) Debtors turnover (in days) (v) Creditors turnover (in days) (vi) Return on capital employed (ROCE) (vii) Gross profit percentage (viii) Net profit percentage (b). Give a brief comment on the performance of the company, based on the above ratios.

1297


How to pass VAT retention entry on computer and Furniture

2416


Assuming that a firm pays tax at a 50 per cent rate, compute the after tax cost of capital in the following cases: I. A 8.5 % preference share sold at par. II. A perpetual bond sold at par, coupon rate of interest being 7 per cent III. A ten year, 8 percent, Rs.1000 par bond sold at Rs.950 less 4 percent underwriting commission.

2868


can i material bill book in miro without vat on transport charges ?

1603