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Ratio analysis

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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)

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

Message likes : 1 times

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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