Question

Revenue from Operations, i.e., Net Sales ₹ 8,20,000; Return ₹ 10,000; Cost of Revenue from Operations (Cost of Goods Sold) ₹ 5,20,000; Operating Expenses ₹ 2,09,000; Interest on Debentures ₹ 40,500; Gain (Profit) on Sale of a Fixed Asset ₹ 81,000. Calculate Net Profit Ratio. 

Answer 1

Net Sales= Rs 8,20,000 

Gross Profit = Net Sales − Cost of Goods Sold

= 8,20,000 − 5,20,000

= Rs 3,00,000 

Net Profit = Gross Profit - Operating Expenses - Interest on Debentures + Profit on Sale of Fixed Assets

= 3,00,000 − 2,09,000 − 40,500 + 81,000

= Rs 1,31,500

Net Profit Ratio = `"Net Profit"/"Net Sales" xx 100`

`= 131500/820000 xx 100 = 16.04 %`