Grsso Profit ratio of a company was 25%. Its cash sales were Rs.200000 and credit sales were 90% of the total sales. If the indirect expenses of the company were rs 20000, calcul;ate Net Profit Ratio

Gross profit ratio = 25%  = {Gross profit / Revenue from operation ( Total sales)} x 100
Let total sales be X
Cash sales + Credit sales = Total sales 
2,00,000 + 90% (X) = X
2,00,000 = X - 9/10 (X) 
2,00,000 = 1/10 (X) 
X = 20,00,000 
Thus 2,00,000 + 18,00,000 ( 90% of 20,00,000) = 20,00,000 = Total sales.

With the total sales, find the gross profit which we can assume as Y 

25 = Y / 20,00,000 x 100  
Y = 25 x 20,00,000 / 100 = 5,00,000. 
Thus gross profit = 5,00,000 

Now we have to find the Net profit in order to calculate the NET PROFIT RATIO = Net profit / Total sales x 100 
Net profit = Gross profit - Indirect expenses.  
Net profit = 5,00,000 - 20,000 = 4,80,000

Net profit ratio = 4,80,000 / 20,00,000 x 100 = 24 % 

THUS NPR = 24%