CA Foundation Exam > CA Foundation Questions > From the following data calculate the net pro...
Start Learning for Free
From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.?
Most Upvoted Answer
From the following data calculate the net profit ratio:(1)Before tax,(...
Calculation of Net Profit Ratio
- Gross Sale: Rs. 50,00,000
- Sales Tax on Gross Sale: 8%
- Net Sale: Gross Sale - Sales Tax = Rs. 46,00,000
- Income Tax: 40%
- Profit Before Tax: Rs. 10,00,000
- Net Profit: Profit Before Tax - Income Tax = Rs. 6,00,000
Net Profit Ratio Calculation
Before Tax
Net Profit Ratio before Tax = (Profit Before Tax / Net Sale) x 100
Net Profit Ratio before Tax = (Rs. 10,00,000 / Rs. 46,00,000) x 100
Net Profit Ratio before Tax = 21.74%
After Tax
Net Profit Ratio after Tax = (Net Profit / Net Sale) x 100
Net Profit Ratio after Tax = (Rs. 6,00,000 / Rs. 46,00,000) x 100
Net Profit Ratio after Tax = 13.04%
Explanation
The net profit ratio is a profitability ratio that calculates the percentage of profit earned on the net sales of a business. It is a measure of how much profit is earned for every rupee of sales made.
In this case, the gross sale of Rs. 50,00,000 is reduced by the sales tax of 8% to arrive at the net sale of Rs. 46,00,000. The income tax of 40% is then deducted from the profit before tax of Rs. 10,00,000 to arrive at the net profit of Rs. 6,00,000.
The net profit ratio before tax is calculated by dividing the profit before tax by the net sale and multiplying by 100. The net profit ratio before tax is 21.74%.
The net profit ratio after tax is calculated by dividing the net profit by the net sale and multiplying by 100. The net profit ratio after tax is 13.04%.
Overall, the net profit ratio is an important metric for evaluating the profitability of a business and making decisions about future investments and operations.
Community Answer
From the following data calculate the net profit ratio:(1)Before tax,(...
Profit after tax is equal to 1000000-400000 =600000net profit ratio = profit after tax/gross sale ×100that is 12% i hope so this is correct if not please forgive me
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.?
Question Description
From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.?.
From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.?.
Solutions for From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.? defined & explained in the simplest way possible. Besides giving the explanation of
From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.?, a detailed solution for From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.? has been provided alongside types of From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.? theory, EduRev gives you an
ample number of questions to practice From the following data calculate the net profit ratio:(1)Before tax,(2)After tax:. Gross sale Rs.50,00,000, sales tax on gross sale 8%, income tax 40% , profit before tax Rs.10,00,000.? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup