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Operating Profit Ratio : ``
Net operating profit = Net Profit after Tax+ Non-Operating Expenses – Non Operating Incomes
Gross Profit – Operating Expenses + Operating Incomes
Non Operating Expenses = Finance Cost (Interest on Borrowings) + Loss on sale of Non Current Assets
Non Operating Incomes = Interest and Dividend Received on Investment + Profit on sale of Non Current Assets
From the following information calculate Operating Profit ratio: Opening Stock Rs 10,000; Purchases Rs 1,20,000; Revenue from operations Rs 4,00,000; Purchase Returns Rs 5,000; Returns from Revenue from operations Rs 15,000; Selling Expenses Rs 70,000; Administrative Expenses Rs 40,000; Closing Stock Rs 60,000.