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The following information was extracted from the books of Peshau Traders as at April 1998 Cost of goods sold 65,000 General expenses ...

      

The following information was extracted from the books of Peshau Traders as at April
1998
Cost of goods sold 65,000
General expenses 280,000
Capital for the period was 20% 10,000
Calculate rate of net profit to capital

  

Answers


Kavungya
Rate of net profit to capital
Cost of sales
Convert margins to mark ups
Convert margins to mark ups
Convert % to fraction
20/100 = 1/5
Mark up – 1/5 =1/4
Convert 1/4 into % = 25%
G.P x 25 x 345,200
Sales 100
General expenses 59, 800
NP = GP – General expenses
NP = 185,800 - %9,800 = 26,000
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Kavungya answered the question on March 27, 2019 at 08:56


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