abc ltd has earned a profit of 200000 for the year ended 31st March 2016 If return on total - Accountancy - Accounting Ratios

Question

abc ltd has earned a profit of 200000 for the year ended 31st March
2016 If return on total asset is 5% compute total asset

Decoder_6 · Accepted Answer

Dear Student,

We can calculate total assets by the following formulae :

Total Assets = Net profit x 100/ Rate
= 200000 x 100/5
= 4000000

Regards

abc ltd has earned a profit of 200000 for the year ended 31st March 2016. If return on total asset is 5% compute total asset