Ameen trading company is a popular distributor in the Nizwa region having years of experience in the field of logistics and marketing. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced some financial struggles due to the pandemic – crisis. The company has decided to plan well for the current year based on the past performance so that the company will be able to regain its status. The management of the company has given with you the Income statement for the last year and asked you to calculate the gross profit and net profit margin. Particular OMR Particular OMR Opening Stock Purchases Carriage and Freight Wages Gross Profit b/d 76,250 By Sales 3,15,250 2,000 5,000 2,00,000 5,98,500 1,01,000 By Gross Profit b/d 12,000 "Non-operating incomes: 2,000 " Interest on Securities 7,000 " Dividend on shares 84,000 "Profit on sale of shares 2,06,000 To 5,00,000 98,500 Closing stock 5,98,500 2,00,000 To Administration expenses Selling and Dist expenses “ Non-operating expenses " Financial Expenses Net Profit c/d 1,500 3,750 750 2,06,000 Choose the Gross profit margin and net profit margin of the business from the following options? O a. Gross profit margin is 40% and Net profit margin is 16.8% O b. Gross profit margin is 20% and Net profit margin is 16.8% O Gross profit margin is 16.8% and Net profit margin is 40% O d. Gross profit margin is 16.8% and Net profit margin is 20%
Ameen trading company is a popular distributor in the Nizwa region having years of experience in the field of logistics and marketing. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced some financial struggles due to the pandemic – crisis. The company has decided to plan well for the current year based on the past performance so that the company will be able to regain its status. The management of the company has given with you the Income statement for the last year and asked you to calculate the gross profit and net profit margin. Particular OMR Particular OMR Opening Stock Purchases Carriage and Freight Wages Gross Profit b/d 76,250 By Sales 3,15,250 2,000 5,000 2,00,000 5,98,500 1,01,000 By Gross Profit b/d 12,000 "Non-operating incomes: 2,000 " Interest on Securities 7,000 " Dividend on shares 84,000 "Profit on sale of shares 2,06,000 To 5,00,000 98,500 Closing stock 5,98,500 2,00,000 To Administration expenses Selling and Dist expenses “ Non-operating expenses " Financial Expenses Net Profit c/d 1,500 3,750 750 2,06,000 Choose the Gross profit margin and net profit margin of the business from the following options? O a. Gross profit margin is 40% and Net profit margin is 16.8% O b. Gross profit margin is 20% and Net profit margin is 16.8% O Gross profit margin is 16.8% and Net profit margin is 40% O d. Gross profit margin is 16.8% and Net profit margin is 20%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ameen trading company is a popular distributor in the Nizwa region having years of experience
in the field of logistics and marketing. Over these years, the company has gained a very good
public opinion and quiet a big number of loyal customers. During the last year, the company has
faced some financial struggles due to the pandemic – crisis. The company has decided to plan
well for the current year based on the past performance so that the company will be able to
regain its status.
The management of the company has given with you the Income statement for the last year and
asked you to calculate the gross profit and net profit margin.
Particular
OMR
Particular
OMR
Opening Stock
Purchases
Carriage and Freight
Wages
Gross Profit b/d
To
76,250 By Sales
3,15,250 "Closing stock
2,000
5,000
2,00,000
5,98,500
1,01,000 By Gross Profit b/d
12,000 "Non-operating incomes:
2,000 " Interest on Securities
7,000 " Dividend on shares
84,000 " Profit on sale of shares
2,06,000
5,00,000
98,500
5,98,500
2,00,000
Administration expenses
" Selling and Dist. expenses
" Non-operating expenses
" Financial Expenses
Net Profit c/d
To
1,500
3,750
750
2,06,000
Choose the Gross profit margin and net profit margin of the business from the following options?
O a. Gross profit margin is 40% and Net profit margin is 16.8%
O b. Gross profit margin is 20% and Net profit margin is 16.8%
Gross profit margin is 16.8% and Net profit margin is 40%
O d. Gross profit margin is 16.8% and Net profit margin is 20%
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