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. Partikular OMR Particular OMR Opening Stock Purchases To 76250 By Sales 315250 "Closing stock 5,00,000 98,500 Carriage and Freighe Wages Gross Profit b/d 2,000 5,000 2,00000 5,98.500 101.000 By Gross Profit bd 12D00 Non-operating incomes 2D00 7 p00 84 000 Profit on sale of shares 2,06,000 5,98 50 2,00,000 To Administration expenses "Selling and Dist experses Non-operatinexperses Financal Expenses Net Proftc/d *Interest on Securities "Dividend on shares 1500 3,750 750 2,06,000 Choose the Gross profit margin and net profit margin of the business from the following options? Oa. Gross profit margin is 16.8% and Net profit margin is 40% O b. Gross profit margin is 16.8% and Net profit margin is 20% O C. Gross profit margin is 20% and Net profit margin is 16.8% O d. Gross profit margin is 40% and Net profit margin is 16.8%
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. Partikular OMR Particular OMR Opening Stock Purchases To 76250 By Sales 315250 "Closing stock 5,00,000 98,500 Carriage and Freighe Wages Gross Profit b/d 2,000 5,000 2,00000 5,98.500 101.000 By Gross Profit bd 12D00 Non-operating incomes 2D00 7 p00 84 000 Profit on sale of shares 2,06,000 5,98 50 2,00,000 To Administration expenses "Selling and Dist experses Non-operatinexperses Financal Expenses Net Proftc/d *Interest on Securities "Dividend on shares 1500 3,750 750 2,06,000 Choose the Gross profit margin and net profit margin of the business from the following options? Oa. Gross profit margin is 16.8% and Net profit margin is 40% O b. Gross profit margin is 16.8% and Net profit margin is 20% O C. Gross profit margin is 20% and Net profit margin is 16.8% O d. Gross profit margin is 40% and Net profit margin is 16.8%
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
logisties 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.
Partkular
OMR
Particular
OMR
Opening Stock
Purchases
Carriage and Freight
Wages
Gross Profit bd
To
76,250 By Sales
315 250 "Closing stock
2,000
5,000
2,00,000
5,98500
1,01,000 By Gross Profit b/d
12000 Non-operating incomes
2,000
7 p00 *Dividend on shares
84 000 Profit on sale of shares
2,06,000
5,00,000
98,500
5,98,500
2,00,000
To
Administration expenses
Selling and Dist expenses
"Non-operatingexperses
Financial Expenses
Net Profit c/d
*Interest on Securities
1500
3,750
750
2,06,000
Choose the Gross profit margin and net profit margin of the business from the following options?
Oa.
Gross profit margin is 16.8% and Net profit margin is 40%
b. Gross profit margin is 16.8% and Net profit margin is 20%
O. Gross profit margin is 20% and Net profit margin is 16.8%
O d. Gross profit margin is 40% and Net profit margin is 16.8%
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