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Accountancy
Accounting Ratios
A company has Revenue from Operations of Rs 1,00,000 and Indirect Expenses of Rs 25,000. Rate of Gross Profit is 50%. Net Profit ratio will be.......
25%
50%
75%
85%
Gross Profit = Sales * GPR = 50% of 1,00,000 = 50,000 Net profit = GP - indirect Exp = 50,000-25,000 = 25,000 Net profit Ratio = Net Profit/Sales * 100 = 25000*100/ 100,000 = 25%