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Accountancy
Accounting Ratios
Calculate the net profit from the following information-
₹300000
₹350000
₹400000
₹420000
Net profit = operating profit - non-operating expenses + non-operating income = 400000 - 30000 + 50000 = ₹420000* Operating profit= Sales X operating profit ratio = 2000000 X 20/100 = ₹400000*Operating Profit Ratio = 100 – Operating Ratio = 100 - 80 = 20%