SOLUTION
Gross Profit = 25% on Cost
Let Cost be = x
Gross Profit = x × 25 / 100
= 25x / 100
Or, 5,00,000 = 25x / 100
Or, x = 5,00,000 × 100 / 25
= 20,00,000
∴ Cost of Goods Sold = 20,00,000
Net sales = Cost of goods sold + Gross profit
= 20,00,000 + 5,00,000
= 25,00,000
Capital employed =Equity share Capital +Reserve and surplus + long – term loan
= 10,00,000 + 200,000 + 3,00,000
= 15,00,000
Working Capital = Capital employed- Fixed Assets
= 15,00,000 – 10,00,000
= 5,00,000
Working Capital Turnover = Net sales / Working Capital
= 25,00,000 / 5,00,000
= 5 Times