From the following information calculate 'Gross Profit Ratio': < Revenue from operations 10,00,000 Purchases 3,00,000 Carriage inwards 60,000…

Gross Profit Ratio= Gross Profit / Revenue from Operations x $\displaystyle 100$ Revenue from Operations = ₹ $\displaystyle 10,00,000$ Gross Profit= Revenue from operations- Cost of revenue from operations Cost of revenue from operations= Opening inventory + Net Purchases + Direct expenses – Closing inventory = Decrease in inventory + Net Purchases + Direct expenses = ₹$\displaystyle 40,000$ + ₹$\displaystyle 2,80,000$ + (₹$\displaystyle 50,000$ + ₹$\displaystyle 60,000$) = ₹$\displaystyle 4,30,000$ Gross Profit = ₹$\displaystyle 10,00,000$ - ₹$\displaystyle 4,30,000$ = ₹ $\displaystyle 5,70,000$ Gross Profit Ratio= $\displaystyle 5,70,000$/ $\displaystyle 10,00,000$ X $\displaystyle 100$= $\displaystyle 57$%