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

Rs. 10,000
Rs. 15,000
Rs. 25,000
Rs. 30,000

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 use the formula for net profit margin to calculate the net profit:

Net profit margin = Net profit / Total revenue

10% = Net profit / 6

Net profit = 6000

Therefore, the net profit is Rs. 10,000.

Option B is incorrect because the net profit is not Rs. 15,000.

Option C is incorrect because the net profit is not Rs. 25,000.

Option D is incorrect because the net profit is not Rs. 30,000.

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