2) Details pertaining to the business named “Yapa family & co”, for the year of

operation ending as at 31st December 2019

(Rs:)
Sales 1,800,000
Cost of sales:
Opening stocks 50,000
Purchases 400,000
Carriage inwards 30,000
480,000
Returns (Less) (10,000)
Values presented for sales 470,000
Closing stocks(Less) 160,000
Cost of sales(Less) 310,000 (310,000)
1) Gross profit 1,490,000

Other incomes 600,000

Expenses (Less) 870,000

1,220,000
2) Operating Profit 1,220,000

Interest expenses(Less) 90,000

Profit before taxation 1,130,000

Taxation(Less) 70,000

3) Profit After Taxation(PAT/Net Profit) 1,060, 000

1) Gross Profit Ratio = Gross profit
Sales
= 1,490,000 ×100%
1,800,000
= 82.78%
Here we see that GPR is likely high, we know that GPR the measure of
company efficiency, so the company is in good a position

2) Operating Profit Ratio = Operating Profit

Sales
= 1,490,000 ×100%
1,800,000
= 67.78%
Here you see, the OPR is greater than 50% so its likely we got the profit
greater than half of our investment. So its good for the organisation.

3) Net Profit Ratio = PAT

Sales
= 1,060,000 ×100%
1,800,000
= 58.89%