Question

A firm reports: • Net sales: ₹500 lakh

• Gross profit: ₹125 lakh • Operating expenses: ₹50 lakh • Interest: ₹15 lakh • Tax: ₹20 lakh • Total assets: ₹700 lakh • Equity: ₹300 lakh You are required to compute: (a) Net profit margin (b) Return on equity (ROE) (c) Return on assets (ROA) Which of the following is correct?

A Net profit margin: 8%; ROE: 14.67%; ROA: 6.86%

B Net profit margin: 10%; ROE: 12.5%; ROA: 7.14%

C Net profit margin: 8%; ROE: 13.33%; ROA: 5.7%

D Net profit margin: 12%; ROE: 10%; ROA: 6%

E Net profit margin: 6.4%; ROE: 16%; ROA: 8%

Practice Next

More Accounts Questions

‘TRISHNA mission’, recently seen in the news, is a collaborative project between which two countries?
Which of the following events happened first according to their chronological order?
A credit purchase of machinery recorded in the Purchase Book instead of Journal Proper is an example of:
In May 2024, DRDO handed over ________ defence technology projects to IIT Bhubaneswar.
Pipe ‘A’ takes 15 minutes to fill a tank. Pipe ‘B’ takes 30 minutes to empty the same tank. If pipe ‘B’ is opened 13 minutes after pipe ‘A...
Which of the following act/s is/are provided a “Grievance Handling Mechanism”?

I. Factories act 1948

�...
Which of the following rules is used to determine the force on a current carrying conductor kept inside a magnetic field?
Study the diagram and answer the question that follows.

A = Academicians, E = Teachers, D = Women, B = Men, and C = Doctors. The numbers inside t...
The names of 14 students from section A, 15 students from section B and 16 students from section C were selected. The age of all the 45 students was dif...
In the Union Budget 2024, which initiative did the Finance Minister announce to enhance productivity in agriculture?

A firm reports: • Net sales: ₹500 lakh

Solution