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A firm has Capital. of Rs. 10,00,000; Sales of Rs. 5,00,000; G/Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?

<p><strong>(a)20%,</strong></p> <p><strong>(b)50%,</strong></p> <p><strong>(c)10%,</strong></p> <p><strong> (d)40%.</strong></p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/22
Ahmed Abd Alwahab Awad Ibrahim
by Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

Answer is #

(a)20%

Net profit ratio = (Net Income / Net Sales) X100

 

Net Profit Ratio= ((Gross profit-Expenses)/Net Sales)X100

 

Net Profit Ratio= ((2,000,000-1,000,000)/5,000,000)X100

 

Net Profit Ratio=20%

 

 

 

 

Wakeel Ahmed
by Wakeel Ahmed , Finance Manager , Lloyd & Co. (Emirates) Insurance Brokers LLC

(A)-20%

 

Formula:  (Net profit / Net sales) x100

Net Profit:100K

Net Sales:500K

Net Profit% (100000/500000)*100=20%

Here Capital is given just for knowledge or you may assume, just to create confusion 

Deleted user
by Deleted user

a)

 

Deleted user
by Deleted user

ANSWER A.

Mohammed  Mohammed
by Mohammed Mohammed , Senior SAP Consultant , Abyat Mega Store

20%  is the correct answer ............

MOHAMMAD EBRAHIM Hossain
by MOHAMMAD EBRAHIM Hossain , Lecturer , Shahid Mashiur Rahman Degree college, Jhikargacha Jessore

Here Net Profit= Gross Profit-Expenses==100,000

So the % of Net Profit =(Net Profit/Sales)*100=20%

Net Profit ratio is20%

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

OF COURSE ANWER A 

NET PROFIT RATIO =NET INCOME / NET SALES 

=100000/500000=20%

Deleted user
by Deleted user

a --- is the answer

Khan Sohal khan
by Khan Sohal khan , Associate , State Street Syntel Services Pvt Ltd.

20% on sales

Muhammad Faisal Muhammad Rafiq
by Muhammad Faisal Muhammad Rafiq , Chief Accountant , Saudi Can Co

A. (is correct)

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