The table shows extracts from the financial statements of a business for 2022 - HSC - SSCE Business Studies - Question 16 - 2023 - Paper 1
Question 16
The table shows extracts from the financial statements of a business for 2022.
2022
($)
Sales 300 000
Cost of goods sold 200 000
Gross profit 100 000
E... show full transcript
Worked Solution & Example Answer:The table shows extracts from the financial statements of a business for 2022 - HSC - SSCE Business Studies - Question 16 - 2023 - Paper 1
Step 1
Calculate Net Profit
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Answer
To find the net profit, we need to subtract expenses from gross profit.
Net Profit = Gross Profit - Expenses
Calculating:
Net Profit = 100,000 - 40,000 = 60,000
Step 2
Calculate Net Profit Ratio
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Answer
Next, we will calculate the net profit ratio using the formula:
Net Profit Ratio = (Net Profit ÷ Sales) × 100%
Substituting the values we have:
Net Profit Ratio = (60,000 ÷ 300,000) × 100% = 20%
Step 3
Select the Correct Answer
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Answer
The net profit ratio for this business in 2022 is 20%, which corresponds to option B.
