From the following, calculate:
(a) Operating Profit Ratio, and (b) Working Capital Turnover Ratio.
`{:(,"Rs"),("Revenue from Operations","2,00,000"),("Office Expenses","15,000"),("Interest on Debentures","5,000"),("Income from Rent","2,500"),("Current Assets","60,000"):}:|{:(,"Rs"),("Gross Profit","75,000"),("Selling Expenses","26,000"),("Accidental Losses","12,000"),("Commission Received","2,000"),("Current Liabilities","10,000"):}`
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(a) Operating Profit Ratio = `("Operating Profit")/("Revenue from Operations")xx100 = ("Rs. 34,000")/("Rs. 2,00,000")xx100`
(b) Working Capital Turnover Ratio = `("Revenue from Operations")/("Working Capital") = ("Rs. 2,00,000")/("Rs. 50,000")`
= 4 Times.
Working Notes:
1. Operating Profit = Gross Profit - Operating Expenses (i.e., Office Expenses + Selling Expenses) = Rs. 34,000.
2. Working Capital = Current Assets - Current Liabilities = Rs. 50,000.
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