XYZ Ltd. has earned 8% Return on Total Assests of Rs. 50,00,000 and has a Net Profit Ratio of 5%. Find out the Sales of the firm.

ANSWER C 

NET PROFIT = RETURN ON TOTAL ASSETS * TOTAL ASSETS 

                      =0.08 *5000000 =400000 RS

SALES            =NET PROFIT  / NET PROFIT RATIO

                       =400000 /0.05 =8000000 RS 

Sales of the company is80,00,000 as per given information,

company earns8% of50,00,000 i.e.400000 and400000 is equal to5% of sales i.e. if we assume sales is X than5% of X is equal to400000, i.e. X*5/100 =400000, =400000*100/5, =8000000,

sales =80,00,000.

c)     Sales =  50,00,000 *8%/5% =80,00,000 Rs

Agree with all answers (C)

Answer C is correct 

8% Return i.e (5000000*.08)= Rs400000

Which is5% of Net Profit ratio

so Sales=Rs400,000/.05= Rs.8000,000

(c)Rs.80,00,000 

Total Assets of Rs50,000,000 x8% to get the Rs4,000,000 Net Profit 

Rs4,000,000 Net profit divided by5% Net Profit % to get the Sale of80,000,000

C -- is the answer

(c)Rs.80,00,000,

RS80 LAC---------------------------------------------------