Answered: From the following data, calculate…

Business

Accounting

From the following data, calculate (a) Net profit ratio (b) Return on capital employed. (c) Return on Equity Sales

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

From the following data, calculate

(a) Net profit ratio

(b) Return on capital employed.

Sales RO 300,000 Sales returns RO 10,000

Opening stock RO 70,000 Closing stock RO 25,000

Direct expenses RO 40,000 Purchases RO 140,000

Net profit RO 40,000 Share Capital RO 100,000 Reserve and Surplus RO 25,000 Long term Loans RO 50,000

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