Question

revenue from operation ₹800000;gross profit ratio32% ; indirect exp. 10%of gross profit and income tax 40% . what will be the amount of profit after tax? ​

Answer 1

Concept Introduction:-

A profit after tax, also known as a gain after tax, is the quantity of money that is still available over after all appropriate deductions have been completed.

Given Information:-

We have been given that revenue from operation ₹ $800000$; gross profit ratio $32\%$; indirect exp. $10\%$ of gross profit and income tax $40\%$.

To Find:-

We have to find that the amount of profit after tax.

Solution:-

According to the problem

Revenue from operation $=800000$

Gross Profit $=800000 \times \frac{32}{100}=256000$

Indirect exp. $=256000 \times \frac{10}{100}=25600$

Profit before tax$=256000-25600=230400$

Income tax$=230400 \times 40 \%=92160$

Profit after tax$=230400-92160=138240$

Final Answer:-

The amount of profit after tax is $138240$.

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