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Firstly, we try to know the question, “ What is Gross Profit Margin ”.   Basically , when we deduct our Cost of Sales from Net Sales, then we get the amount of Gross Profit. To show the performance how much we generate profit out of cost of sales. It shows the relationship of Gross Profit to  Net Sales. It is expressed in percentage (%). How To Find Gross Profit Margin We use following Gross Profit Margin Formula to calculate Gross Profit Margin:       Gross Pro fit / Net Sales x 100 For Example, for the month of November Gross Profit is Rs . 300000 and Net Sales is Rs . 500000, then by applying the formula, Gross Profit Margin for the November is:   300000 / 500000 x 100 = 60%   Now, let say that for the month of December, Gross Profit increased to Rs . 400000 and Net Sales also increased to Rs . 700000, then Gross Profit Margin is:   400000 / 700000 x 100 = 57% ...

Accounting Operating Cycle simply defines as How ma n y days a company takes to convert inventory or stock into cash. It indicates that how efficient the company is to generate cash from the selling of Inventory and, ultimately, the company makes prompt payment to Creditors. Operating Cycle is also know as Cash Operating Cycle or Cash Conversion Cycle, because it shows how man y days the company converts inventory or stock into cash and also it determines the Working Capital Management of the business that is related to the management of smooth working flow of the business.         Operating Cycle Formula:       Inventor/ Stock Conversion Period + Account Receivable / Debtors Collection Period       Here:     Inventory / Stock Conversion Period = Average Inventor or Stock / Cost of Sales / 365       And   Account Receivabl e / Deb tors...