SerNichols
Member
- Joined
- Aug 13, 2013
- Messages
- 45
- Gender
- Male
- HSC
- 2014
Tyred and Exhausted Pty Ltd, a motor mechanic in Western Sydney, has provided you with the following information based on the income statement for the year ended 31 December 2012.
Total sales $5000
Net profit Ratio 5%
Gross profit Ratio 60%
Question: The gross profit ratio has increased from 40% in 2011 to 60% in 2012 while sales and expenses remained the same.
What was the net profit or loss in 2011?
A) $500 net loss
B) $750 net loss
C) $750 net profit
D) $2000 net profit
Working out please. Thanks
Total sales $5000
Net profit Ratio 5%
Gross profit Ratio 60%
Question: The gross profit ratio has increased from 40% in 2011 to 60% in 2012 while sales and expenses remained the same.
What was the net profit or loss in 2011?
A) $500 net loss
B) $750 net loss
C) $750 net profit
D) $2000 net profit
Working out please. Thanks
