Show how the three common rations is calculated in accounting

Show how the three common rations is calculated in accounting

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There are 3 important ratios to be looked at:
a)Gross profit margin
b)Mark up
c)Stock turnover
If a firm has a uniform Gross Profit for all the items sold then any information available on sales or purchases can be used to derive the total Gross Profit for the period and incase there is sufficient information on expenses, then the Net Profit can also be derived.
The above ratios are computed as follows:

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Titany answered the question on December 14, 2021 at 11:36

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