The following accounting information is given by a company Total assets turnover 3 times the net profit margin: 10% Total assets: Rs. 1,00,000. The net profit is

The correct answer is A. Rs. 10,000.

The formula for net profit margin is:

Net profit margin = Net profit / Total revenue

The formula for total assets turnover is:

Total assets turnover = Net sales / Average total assets

We are given that the total assets turnover is 3 times the net profit margin, and the net profit margin is 10%. We are also given that the total assets are Rs. 1,00,000.

We can use the formula for total assets turnover to calculate the net sales:

Total assets turnover = Net sales / Average total assets

3 = Net sales / (1,00,000 / 2)

6 = Net sales

We can then

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