Use the following information to answer the given questions \(\begin{array}{c|c} & N \\ \hline Debtors & 30,000 \\ Creditor & 20,000 \\ \text{Opening stock}...
Question 1 Report
Use the following information to answer the given questions
\(\begin{array}{c|c} & N \\ \hline Debtors & 30,000 \\ Creditor & 20,000 \\ \text{Opening stock} & 15,000 \\ \text{Closing stock} & 18,000\\ Wages & 3,000 \\ Salaries & 10,000 \\ Purchases & 30,000 \\ Sales & 60,000\end{array}\)
The net profit percentage is
\(\begin{array}{c|c} & N \\ \hline Debtors & 30,000 \\ Creditor & 20,000 \\ \text{Opening stock} & 15,000 \\ \text{Closing stock} & 18,000\\ Wages & 3,000 \\ Salaries & 10,000 \\ Purchases & 30,000 \\ Sales & 60,000\end{array}\)
The net profit percentage is
Answer Details
To calculate the net profit percentage, we need to subtract all the expenses from the total revenue and then divide it by the total revenue.
Total Revenue = Sales = N60,000
Total Expenses = Opening Stock + Purchases + Wages + Salaries - Closing Stock = N15,000 + N30,000 + N3,000 + N10,000 - N18,000 = N40,000
Net Profit = Total Revenue - Total Expenses = N60,000 - N40,000 = N20,000
Net Profit Percentage = (Net Profit / Total Revenue) x 100% = (N20,000 / N60,000) x 100% = 33.33% (rounded to the nearest whole number)
Therefore, the answer is 33%.
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