Ratio analysis

This query is : Open

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% on cost of revenue from operations. Please what will be cost of revenue from operations? And how?

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

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Guest

Guest (Querist)

07 April 2017 Thanks Sir, the book has some different method, i got confused. Thanks for making it easy!

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