Calculate net profit margin from the following given information: Particulars Amount (₹) Revenue from operations 17,00,000 Cost of Revenue from operations 10,00,000 Selling Expenses 2,00,000 Administrative Expenses 1,00,
CS Executive · Corporate Accounting and Financial Management · PYQS · June 2024
Calculate net profit margin from the following given information: Particulars Amount (₹) Revenue from operations 17,00,000 Cost of Revenue from operations 10,00,000 Selling Expenses 2,00,000 Administrative Expenses 1,00,000 Depreciation 2,00,000 Interest expenses 50,000 Other Income 45,000 Tax Rate 30%
Answer & Explanation:
Answer 2(b) Particulars Amount in ₹ Sales 17,00,000 Cost of Sales -10,00,000 Gross Profit 7,00,000 41.18% Selling Expenses -2,00,000 Admin Expenses -1,00,000 EBITDA 4,00,000 23.53% Depreciation -2,00,000 EBIT 2,00,000 Interest -50,000 Other income 45,000 EBT 1,95,000 Tax -58,500 Tax rate 30% Net Profit 1,36,500 7.82% Net profit Margin = Net Profit / Total Revenue = ₹ 1,36,500 / (₹ 17,00,000 + ₹ 45,000) = ₹ 1,36,500 / ₹ 17,45,000 = 7.82% Note: Total Revenue and Net Profit includes Other Income.
Topics: Financial Management
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