A company's financial statements show the following information: Revenue: Rs. 1,000,000 Cost of Goods…
Profit before tax is Rs.1,000,000 - Rs.600,000 - Rs.200,000 = Rs.200,000. Tax is 25% of Rs.200,000, or Rs.50,000, leaving net profit of Rs.150,000. Net profit margin is…
Choose your answer
A company's financial statements show the following information:
Revenue: Rs. 1,000,000
Cost of Goods Sold: Rs.600,000
Operating Expenses: Rs.200,000
Tax Rate: 25%
What is the company's net profit margin?
Answer and explanation
Correct answer B
Profit before tax is Rs.1,000,000 - Rs.600,000 - Rs.200,000 = Rs.200,000. Tax is 25% of Rs.200,000, or Rs.50,000, leaving net profit of Rs.150,000. Net profit margin is Rs.150,000 / Rs.1,000,000 × 100 = 15%.
Practice for these exams
-
Telangana SET (TG SET)