Question

₹400000; cost of revenue from operation 60% of revenue from operation, indirect expenses 15% of gross profit ;income tax 40% .calculate net profit after tax

Answer 1

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Answer 2

The correct Question is: revenue from operations Rs. 400000

Gross profit ratio = 25%

operating ratio =90%

non-operating expenses = 2000

non operating income =22000

calculate net profit.

Given: cost of revenue = 400000

indirect expenses= 15% of gross profit

income tax = 40%

To Find: calculate net profit after tax.

Solution:

we know ,

Net profit = Operating profit + Non-operating profit - non operating expenses

= 40000 + 22000 - 2000

= 60000

operating profit Ratio = (100 - operating profit)

= (100 -90)

= 10%

operating profit = 400000* 10% = Rs. 40000

Net Profit Ratio = (net profit / revenue from operation)* 100

= (60000/400000)*100

= 15%

Note: The net profit ratio is a way to measure the financial performance of a business.