From the following information calculate 'Gross Profit Ratio' : < Revenue from operations $\displaystyle 10,00,000$ Purchases $\displaystyle 3,00,000$ Carriage inwards $\displaystyle 60,000$ Salaries $\displaystyle 1,18,000$ Decrease in inventory $\displaystyle 40,000$ Returns outwards $\displaystyle 20,000$ Wages $\displaystyle 50,000$

Gross Profit Ratio= Gross Profit / Revenue from Operations x $\displaystyle 100$……………………..(½) 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 = ₹$\displaystyle 40,000$ + ₹$\displaystyle 2,80,000$ + (₹$\displaystyle 50,000$ + ₹$\displaystyle 60,000$) = ₹$\displaystyle 4,30,000$…………………….……………………..…..($\displaystyle 1$) Gross Profit = ₹$\displaystyle 10,00,000$ - ₹$\displaystyle 4,30,000$ = ₹ $\displaystyle 5,70,000$ ……………………. ……………………. ……………………. ($\displaystyle 1$) Gross Profit Ratio= $\displaystyle 5,70,000$/ $\displaystyle 10,00,000$ X $\displaystyle 100$= $\displaystyle 57$%…………. …………………..…. (½)