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      Question

      Calculate Net profit to capital

      ratio. Refer to the following information to answer the next 4 questions (Q15 to Q18):
      A 16.67% Correct Answer Incorrect Answer
      B 40% Correct Answer Incorrect Answer
      C 20% Correct Answer Incorrect Answer
      D 25% Correct Answer Incorrect Answer
      E 18% Correct Answer Incorrect Answer

      Solution

      Net profit to capital ratio (Also called as Return on investment) Net Profit/Capital Employed = 2,50,000/15,00,000 Net Profit = Gross Profit – Indirect Expenses = 6,00,000 – 3,50,000 = 2,50,000 Gross Profit= Net Sales + Closing Stock – Opening Stock – Purchases – Direct Expenses = 12,00,000 + 1,00,000 – 20,000 – 6,30,000 – 50,000 = 6,00,000

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