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DFC Model

The Trading and Profit and Loss Account for Fantasy Ltd. for the year ending 31-3-2022 presents various financial metrics. Key ratios calculated include Gross Profit Ratio at 40%, Administration Expenses Ratio at 20.20%, Operating Ratio at 644.92%, Net Profit Ratio at 18.2%, Operating (Net) Profit Ratio at 17.40%, and Stock Turnover Ratio at 3.43. These ratios provide insights into the company's profitability and operational efficiency.

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4 views2 pages

DFC Model

The Trading and Profit and Loss Account for Fantasy Ltd. for the year ending 31-3-2022 presents various financial metrics. Key ratios calculated include Gross Profit Ratio at 40%, Administration Expenses Ratio at 20.20%, Operating Ratio at 644.92%, Net Profit Ratio at 18.2%, Operating (Net) Profit Ratio at 17.40%, and Stock Turnover Ratio at 3.43. These ratios provide insights into the company's profitability and operational efficiency.

Uploaded by

ayushrm10
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

The following Trading and Profit and Loss Account of Fantasy Ltd.

for the year 31-3- 2022 is given below:


Particular Rs. Particular Rs.
To Opening
Stock 76,250 By Sales 5,00,000
By Closing
To Purchases 3,15,250 stock 98,500
To Carriage
and Freight 2,000
To Wages 5,000
To Gross
Profit c/d 2,00,000
5,98,500 5,98,500
To
Administrati By Gross
on expenses 1,01,000 Profit b/d 2,00,000
To Selling
and Dist. By Interest
expenses 12,000 on Securities 1,500
To non-
operating By Dividend
expenses 2,000 on shares 3,750
To Net Profit By Profit on
c/d 91,000 sale of shares 750
2,06,000 2,06,000
Calculate:
(1) Gross Profit Ratio
(2) Administration Expenses Ratio
(3) Operating Ratio
(4) Net Profit Ratio.
(5) Operating (Net) Profit Ratio
(6) Stock Turnover Ratio.
2 is given below:
1 Gross Profit Ratio

Fromula

Gross profit/ net sales*100

Excle Formula
40

Answer 40%

2 Administration Expenses Ratio 100

Fromula

Administration expenses/Net sales*100

Excle Formula
20.2
Answer = 20.20%

3 Operating Ratio
formula
COGS + Oprating Expenses/net sales*100
Excle Formula
644.9238579

4 Net Profit Ratio


Net Profit Before Tax/Net Sales *100
18.2
Answer = 18.2% Answer = 18.2%

5. Operating (net) profit ratio


Formula
17.4
Answer = 17.40%

6Stock Turnover Ratio


Formula
COGS/aVERAGE stock
Excle Formula
3.433476395

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