Practical Problem 15
Calculate Net Profit Ratio from the following
Sales | ₹ 3,80,000 |
Cost of good sold | ₹ 2,60,000 |
Indirect Exp | ₹ 60,000 |
SOLUTION:
Sales | ₹ 3,80,000 |
Less: Cost of goods sold | ₹ 2,60,000 |
Gross profit | ₹ 1,20,000 |
Less: Indirect expense | ₹ 60,000 |
Net profit | ₹ 60,000 |
Net Profit Ratio = (Net Profit ÷ Sales) × 100
∴ Net Profit Ratio = (60000 ÷ 380000) × 100
∴ Net Profit Ratio = 15.79 %