Question
A company reports Net Sales of ₹100 lakh, Gross Profit
of ₹40 lakh, and Operating Profit of ₹25 lakh. Interest is ₹5 lakh and Tax is ₹4 lakh. Calculate the Net Profit Ratio.Solution
NP = 25 – 5 – 4 = ₹16 lakh; NP Ratio = 16/100 = 16%
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