I need some help please!!!! (1 Viewer)

[SW220]

I would really appreciate if anyone could help me with a few questions that I have! You would be saving my life!!!

This is the financial statement in question:


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COMPANY NAME P/L
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Sales.....................................1,000,000
Opening Stock......40,000
Distribution...........60,000
Admin Expenses...140,000
Closing Stock........140,000
Purchases.............400,000
Selling & Promo.....200,000

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Now I have the following questions on that statement:
(Can you please show all working too)

1. What is the NET PROFIT RATIO of the business?
2. What is the GROSS POFIT of the business?
3. What is the GROSS PROFIT RATIO of the business?

thanks!!!

 

[Kulazzi]

NP = COGS - expenses
COGS = Opening Stock + Purchases - Closing Stock
GP = Sales - COGS

NP Ratio = NP/Sales
GP Ratio = GP/Sales

I've given you all the formulaes which are pretty straightforward. You should be able to do them. Yu need to add all the expenses together as well.