Total Assets Turnover = 4 Net profit = 10% Total assets = Rs. 50,000 The amount of Net profit would be:

Rs. 5,000
Rs. 10,000
Rs. 20,000
Rs. 25,000

The correct answer is A. Rs. 5,000.

Total assets turnover is a measure of how efficiently a company uses its assets to generate sales. It is calculated by dividing net sales by total assets. Net profit is a measure of a company’s profitability. It is calculated by dividing net income by net sales.

In this question, we are given the following information:

  • Total assets turnover = 4
  • Net profit = 10%
  • Total assets = Rs. 50,000

We can use this information to calculate net income as follows:

Net income = (Net profit / Total assets turnover) * Total assets

Net income = (10% / 4) * Rs. 50,000

Net income = Rs. 5,000

Therefore, the amount of net profit would be Rs. 5,000.

Option A is the correct answer because it is the only option that is consistent with the given information. Option B is incorrect because it is twice the amount of net profit that would be expected based on the given information. Option C is incorrect because it is four times the amount of net profit that would be expected based on the given information. Option D is incorrect because it is five times the amount of net profit that would be expected based on the given information.