Question 161:
Revenue from Operations, i.e., Net Sales ` 8,20,000; Return ` 10,000; Cost of Revenue from Operations (Cost of Goods Sold) ` 5,20,000; Operating Expenses ` 2,09,000; Interest on Debentures ` 40,500; Gain (Profit) on Sale of a Fixed Asset ` 81,000. Calculate Net Profit Ratio.
Answer:
Net Sales= ` 8,20,000
Gross Profit = Net Sales - Cost of Goods Sold
= 8,20,000 - 5,20,000
= ` 3,00,000
Net Profit = Gross Profit - Operating Expenses - Interest on Debentures + Profit on Sale of Fixed Asset
= 3,00,000 - 2,09,000 - 40,500 + 81,000
= ` 1,31,500
Net Profit Ratio=Net Profit/Net Sales×100
=1,31,500/8,20,000×100
=16.04%
Question 162:
Revenue from Operations `4,00,000; Gross Profit Ratio 25%; Operating Ratio 90%. Non-operating Expenses `2,000; Non-operating Income `22,000. Calculate Net Profit Ratio.
Answer:
Net Profit=Operating Profit + Non Operating Incomes-Non Operating Expenses
=40,000+22,000- 2,000= ` 60,000
Operating Profit Ratio=100−Operating Ratio
=100-90
=10%
Operating Profit=4,00,000×10%
= ` 40,000
Net Profit Ratio=Net Profit/Revenue from operations×100
=60,000/4,00,000×100
=15%
Return on Capital Employed (Or Return on Investment)
Question 163:
Net Profit before Interest and Tax `2,50,000; Capital Employed `10,00,000. Calculate Return on Investment.
Answer:
Net Profit before Interest and Tax = 2,50,000
Capital Employed = 10,00,000
Return on Investment = Net profit Before Interest and Tax ×100/ Capital Employed
= 2,50,000×100/10,00,000
= 25%
Question 164:
Net Profit before Interest and Tax `6,00,000; Net Fixed Assets `20,00,000; Net Working Capital `10,00,000; Current Assets `11,00,000. Calculate Return on Investment.
Answer:
Net Profit before Interest and Tax = 6,00,000
Capital Employed = Net Fixed Assets + Net Working Capital
= 20,00,000 + 10,00,000 = 30,00,000
Return on Investment = Net profit Before Interest and Tax ×100/ Capital Employed
= 6,00,000×100/30,00,000
= 20%
Question 165:
Net Profit before Interest and Tax `4,00,000; 15% Long-term Debt `8,00,000; Shareholders' Funds `4,00,000. Calculate Return on Investment.
Answer:
Net Profit before Interest and Tax = 4,00,000
Capital Employed = 15% long-term Debt + Shareholders’ Funds
= 8,00,000 + 4,00,000 = 12,00,000
Return on Investment = Net profit Before Interest and Tax ×100/ Capital Employed
= 4,00,000×100/12,00,000
= 33.33%
Ts Grewal Solution 2023-2024
Click below for more Questions
Class 12 / Volume – I
Chapter 3 – Accounting Ratio