A firm has Capital. of Rs. 10,00,000; Sales of Rs. 5,00,000; G/Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?

Answer is #

(a)20%

Net profit ratio = (Net Income / Net Sales) X100

Net Profit Ratio= ((Gross profit-Expenses)/Net Sales)X100

Net Profit Ratio= ((2,000,000-1,000,000)/5,000,000)X100

Net Profit Ratio=20%

(A)-20%

Formula:  (Net profit / Net sales) x100

Net Profit:100K

Net Sales:500K

Net Profit% (100000/500000)*100=20%

Here Capital is given just for knowledge or you may assume, just to create confusion 

a)

ANSWER A.

20%  is the correct answer ............

Here Net Profit= Gross Profit-Expenses==100,000

So the % of Net Profit =(Net Profit/Sales)*100=20%

Net Profit ratio is20%

OF COURSE ANWER A 

NET PROFIT RATIO =NET INCOME / NET SALES 

=100000/500000=20%

a --- is the answer

20% on sales

A. (is correct)