Question

net profit ratio=20% net profit= 160000 sales=? net profit ratio = net profit /sales *100 how to solve this reverse sum please help me​

Answer 1

Given :

Net Profit Ratio = 20%

Net Profit = 1,60,000

To Find :

Sales

${\underline{\sf{Net \: Profit \: Ratio = \frac{Net \: Profit}{Sales} \times 100}}}$

Solution :

$\to\sf \: Net \: Profit \: Ratio = \frac{Net \: Profit}{Sales} \times 100$

$\sf\to \: 20 = \frac{160000}{Sales} \times 100$

$\sf \to \:20 = \frac{160000 \times 100}{Sales}$

$\sf\to \: 20 \times Sales = 16000000$

$\sf\to \: Sales = \frac{16000000}{20}$

$\sf\to{ \: Sales \: = 800000}$

$\therefore \rm \: Sales \:or \: Revenue \: from \: Operations \: = 800000$