90,000 20,000 Profitability Ratios: 1. Following is the profit and loss account of a limited company Opening Stock 10,000 Sales Purchases 50,000 Closing Stock Gross profited 50,000 110,000 Administration Expenses Selling and Distribution Expenses 6,000 Gross profit b'd 4,000 Net Profit 40,000 50.000 Calculate: Gross profit ratio, Net profit ratio 110,000 50,000 50,000 2. From the following data, calculate (a) Gross profit ratio (6) Net profit ratio. Sales R0 300,000 Cost of sales RO 200,000 Net profit RO 60,000 Sales Returns RO 20,000 3. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio. Sales RO 320,000 Sales returns RO 25,000 Opening stock RO 70,000 Closing stock R0 15,000 Direct expenses RO 40,000 Purchases RO 140,000 Net profit R0 80,000 Purchase retums RO 20,000 4. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio Sales R0 50,000 Purchases RO 35,000 Opening stock R0 5,000 Selling expenses RO 1,500 Closing stock RO 3,000 Administration expenses RO 2.000 5. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio (c) Return on capital employed Sales R 80 (400 Opening stock RO 15,000 Closing stock RO 13,000 Purchases RO 40,000 Distribution expenses RO 12,000 Administration exp RO 8,000 Capital employed RO 95,000 6. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio (c) Return on capital employed. Sales R0 300,000 Sales returns RO 10,000 Opening stock RO 70,000 Closing stock RO 15,000 Direct expenses R0 40,000 Purchases RO 140,000 Net profit R0 40,000 Share Capital RO 100,000 Reserve and Surplus RO 25,000 Long term Loans RO 50,000