Calculate net profit ratio : Gross Profit Ratio of a company was 30% Its credit sales were Rs - Accountancy - Accounting Ratios

Question

Calculate net profit ratio :
Gross Profit Ratio of a company was 30% Its credit sales were Rs
4,00,000 and its cash sales were 80% of the total sales Indirect
expenses of the company were Rs 25,000 and direct expense were Rs
30,000

Kavya Shabu · Accepted Answer

credit sales = 20% of total sales
4,00,000 = 20/100 * sales
sales = 4,00,000 * 100 / 20
total sales = 20,00,000
gross profit = 30 % of total sales
= 30 /100 * 20,00,000
=6,00,000
net profit = gross profit - indirect expense
= 6,00,000 - 25,000
=5,75,000
net profit ratio = net profit / sales * 100
= 5,75,000 / 20,00,000 * 100
= 28 7 %

Calculate net profit ratio : Gross Profit Ratio of a company was 30% . Its credit sales were Rs. 4,00,000 and its cash sales were 80% of the total sales. Indirect expenses of the company were Rs. 25,000 and direct expense were Rs. 30,000.

Calculate net profit ratio :

Gross Profit Ratio of a company was 30% . Its credit sales were Rs. 4,00,000 and its cash sales were 80% of the total sales. Indirect expenses of the company were Rs. 25,000 and direct expense were Rs. 30,000.