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financial ratios help!!! (1 Viewer)

loz1

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i know that this will be very simple for some people and i come across these sort of questions quite regularly in multiple choice but i have no idea how to do them, and no doubt there will be one in the exam tomorrow, so can somebody please fill me in on how to do this question;

observe the following table;

sales; $465 000
opening stock; $110 000
purchases; $53 000
closing stock; $68 000
expenses; $178 000

what is the net profit of the business

a)$192 000
b)$56 000
c)$370 000
d)287 000
 

H4wk1n4t0r

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Net profit = Sales - (Opening stock + purchases - closing stock) - expenses
NP = 465000 - (110000 + 53000 - 68000) - 178000
NP = 192000
Therefore (a).
 

loz1

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wow that was so easy lol thank you so much!
 

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