1.

Calculate the Net Profit Ratio (up to two decimal places) from the following information :ParticularsGross Profit Rs 80,000Salary and rent Rs 30,000Interest on Debentures Rs 5,000Gain on sale of furniture Rs 2,000Revenue from Operations Rs 4,00,000

Answer»

Net Profit Ratio = Net Profit after tax  / Revenue from Operations x 100

Net Profit = Gross Profit  - Salaries and Rent  - Interest on Debentures + Gain on Sales of Furniture

= Rs  80, 000 - Rs 30, 000 - Rs  5,000 + Rs 2,000

Net Profit = RS 47,000

Net profit  Ratio  = Rs 47,000 / Rs 4,00,000 x 100 = 11.75 %



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