Use the following information to answer the given question \(\begin{array}{c|c} & N \\ \hline Sales & 200,000 \\ \text{Opening Stock} & 20,000 \\ purchases ...

To calculate the percentage of net profit to sales, we need to first calculate the net profit. Net profit is the difference between total revenue (sales + credit sales) and total expenses (opening stock + purchases + expenses + closing stock). Total revenue = Sales = 200,000 Total expenses = Opening Stock + Purchases + Expenses - Closing Stock = (20,000 + 140,000 + 10,000) - 10,000 = 160,000 Net profit = Total revenue - Total expenses = 200,000 - 160,000 = 40,000 Now, to calculate the percentage of net profit to sales, we divide the net profit by sales and multiply by 100. Percentage of net profit to sales = (Net profit/Sales) x 100 = (40,000/200,000) x 100 = 20% Therefore, the percentage of net profit to sales is 20%. This means that for every dollar of sales, the company is earning 20 cents in net profit.