The following information is available:
Trade Receivables Turnover Ratio = 4 times
Gross Profit Ratio = 20%
Gross Profit for the year was ₹5,00,000
Bills Receivables = ₹60,000
Net Profit (after) Tax Ratio 12%
Tax Rate is 50%
10% Long-term Borrowings = ₹12,00,000
Shareholders' Funds are ₹ 4,00,000
Non-current Liabilities are ₹18,00,000
Sale of goods on credit only.

What will be the net profit before interest and tax?

₹720000

Net Profit Ratio = Net profit/Revenue from Operations × 100
12= (Net profit/ 2500000)X 100
Net profit= (2500000*12)/100
              =₹300000

Tax rate is 50% means profit before tax is 300000 + 300000 = ₹600000
10% Long-term Borrowings = ₹12,00,000 means Interest= 1200000X10/100 = ₹120000
So, net profit before interest and tax = 600000 + 120000 =₹720000