Fm Ratio analysis

This query is : Resolved

Guest

Guest (Querist)

04 April 2017 Cash revenue from operations 33.3 % of credit revenue from operations, cost of revenue from operations 300000, gross profit 25 % on revenue from operations... Can you please tell me how to calculate total revenue from operations and credit revenue from operations?

CA Gopal Somani

CA Gopal Somani (Expert)
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05 April 2017 GP is 25% of Revenue from operations
So if revenue from operations is 100
GP will be 25
Cost of revenue from operations will be 75

So now, Total revenue from operations will be 300000*100/75 = 400000

Cash revenue is 33.33% of credit revenue
So,if credit revenue is 100 then cash revenue will be 33.33 and total revenue will be 133.33

So, now Cash revenue = 400000*33.33/133.33
That will be 100000
So credit revenue = 400000-100000 = 300000

I hope it will be clear. Please let me know if you have any queries.

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Guest

Guest (Querist)

05 April 2017 Thank you, Thank you, Thank you so much much Sir!.... I understood

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CA Gopal Somani

CA Gopal Somani (Expert)
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05 April 2017 Welcome. Happy to help.

I have a youtube channel where i explain various concepts of Accounts of IPCC and Final. I'll start posting videos for FM as well.
You can check from below link

https://www.youtube.com/channel/UCJ3kfF_y1TWkfomAJvjWjTw

Guest

Guest (Querist)

05 April 2017 My pleasure, Sir. Again Thanks for your help. ☺️

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Guest

Guest (Querist)

05 April 2017 Can you able to reply me whenever I get any query? Sir

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CA Gopal Somani

CA Gopal Somani (Expert)
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05 April 2017 Sure. you can put a comment and i'll reply

Guest

Guest (Querist)

05 April 2017 Thank you so much Sir, for your help. Exams are near, I am worried. 🙁

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CA Gopal Somani

CA Gopal Somani (Expert)
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05 April 2017 Don't worry. All the Best !!

Guest

Guest (Querist)

05 April 2017 Thanks Sir! ☺️

Guest

Guest (Querist)

07 April 2017 Sir, Cash revenue from operations 25% of total Revenue from operations, credit Revenue from operations ₹300,000, Gp 33. 3%

Guest

Guest (Querist)

07 April 2017 Sir, Cash revenue from operations 25% of total Revenue from operations, credit Revenue from operations â‚¹300,000, Gp 33. 3% on cost of revenue from operations. Please what will be cost of revenue from operations? And how?

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CA Gopal Somani

CA Gopal Somani (Expert)
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07 April 2017 If Total revenue is 100
Cash revenue 25
Credit Revenue 75

So now, Total revenue will be 300000*100/75 = 4000000

Since GP% is given on Cost of revenue from operation, so we will assume Cost of revenue from operations as 100
Then GP will be 33.33
Sales (Revenue from operations ) will be 133.33

When Sale is 133.33 cost is 100
so when sale is 400000, cost of revenue form operations will be 400000*100/133.33 = 300000