A trading firm’s average inventory is Rs. 20,000 (cost). If the inventory turnover ratio is 8 times and the firm sells goods at a profit of `20%` on sales, ascertain the profit of the firm.

A trader carries an average inventory of Rs. 40,000. His inventory turnover ratio is 8 times. If he sells goods at a profit of 20% on Revenue from operations, find out the gross profit.

(i) Revenue form operations: cash sales Rs 420000, credit sales Rs 600000, Return Rs 20000 cost of revenue from opeation sor cost of goods sold Rs 800000 calculate gross profit ratio. (ii) average inventroy Rs 160000, inventory trunover ratio 6 times, selling prices 25% above cost .calculate gross profit ratio (iii) opening inventroy rs 100000, closing inventory Rs 60000 inventory turnover ratio 8 times selling price 25% above cost calculate gross profit ratio.

On April 1st 2015, an existing firm had assets of Rs. 5,00,000 including cash of Rs. 20,000. the firm had a General Reserve of Rs. 90,000, partner's capital accounts showed a balance of Rs. 3,80,000 and creditors amounted to Rs. 30,000. If the normal rate of return is 20% and the goodwill of the firm is valued at Rs. 64,000 at 4 year's purchase of super profit, find the average profits of the firm.

An existing firm had assets of Rs. 4,00,000 including cash of Rs. 15,000. Its creditors amounted to Rs. 20,000 on that date. The partner's capital accounts showed a balance of Rs. 3,00,000 and reserves amounted to Rs. 80,000. If the normal rate of return is 10% and the goodwill of the firm is valued at Rs. 75,000 at 3 year's purchase of super profits, find the average profits of the firm.

Calculate gross profit ratio from the followong data: Average inventory rs 320000, inventory trunover ratio 8 times, average trade revceivable Rs 400000 trade receivables trunover ratio 6 times , cash sales 25% of net sales.

Calculate gross profit ratio form the following data : Average inventory Rs 160000, inventroy trunovr Ratio 8 times, Average trade reveivables Rs 200000, Trade receivables turnover ratio 6 times, cash sales 25% of net sales.