Explain Profitability Ratio. Calculate the gross margin percentage, net margin percentage and EPS from the given information: Company ABC ltd manufactures customised skates where the total equity capital is Rs 50 Lakh with 100 per share value. At the end of the financial year, the total assets are Rs 45 lakhs and also current liabilities is Rs 8 lakhs, and the income statement looks like below - Particulars Amount (Rs.) Total Sales 500,000 Cost of Goods Sold 130, 000 Gross Profit 370,000 Salary Expense 10,000 Operating Expenses 170,000 Interest 10, 000 Depreciation 25000 Taxes 4000 Net Profit 151,000
Explain Profitability Ratio. Calculate the gross margin percentage, net margin percentage and EPS from the given information: Company ABC ltd manufactures customised skates where the total equity capital is Rs 50 Lakh with 100 per share value. At the end of the financial year, the total assets are Rs 45 lakhs and also current liabilities is Rs 8 lakhs, and the income statement looks like below - Particulars Amount (Rs.) Total Sales 500,000 Cost of Goods Sold 130, 000 Gross Profit 370,000 Salary Expense 10,000 Operating Expenses 170,000 Interest 10, 000 Depreciation 25000 Taxes 4000 Net Profit 151,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Explain Profitability Ratio. Calculate the gross margin percentage, net margin percentage and EPS from the given information: Company ABC ltd manufactures customised skates where the total equity capital is Rs 50 Lakh with 100 per share value. At the end of the financial year, the total assets are Rs 45 lakhs and also current liabilities is Rs 8 lakhs, and the income statement looks like below - Particulars Amount (Rs.) Total Sales 500,000 Cost of Goods Sold 130, 000 Gross Profit 370,000 Salary Expense 10,000 Operating Expenses 170,000 Interest 10, 000
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