Al Mawarid Construction Equipment LLC has provided following Income Statement for the year ending 31st Mar 2020: Particulars Amount Sales 180,000 Less: Cost of Goods Sold -90,000 Gross Profit 90,000 Less: Operating Expenses -55,000 Operating Profits (EBIT) 35,000 Less: Financial Charges -15,000 (Interest Paid) Profit Before Tax 20,000 Less: Taxes -3,000 Profit After Tax (Net Profit for the Year) 17,000 Calculate Gross Profit Ratio and Operating Profit Ratio from the above Income Statement.
Al Mawarid Construction Equipment LLC has provided following Income Statement for the year ending 31st Mar 2020: Particulars Amount Sales 180,000 Less: Cost of Goods Sold -90,000 Gross Profit 90,000 Less: Operating Expenses -55,000 Operating Profits (EBIT) 35,000 Less: Financial Charges -15,000 (Interest Paid) Profit Before Tax 20,000 Less: Taxes -3,000 Profit After Tax (Net Profit for the Year) 17,000 Calculate Gross Profit Ratio and Operating Profit Ratio from the above Income Statement.
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 15P: Use the following income statement of Elliott Game Theory Consulting to determine its net operating...
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