From the following data, calculate   (a) Net profit ratio (b) Return on capital employed. (c) Return on Equity Sales

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
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From the following data, calculate

 

(a) Net profit ratio

(b) Return on capital employed.

(c) Return on Equity

Sales                            RO 300,000                Sales returns               RO 10,000

Opening stock             RO 70,000                  Closing stock              RO 25,000

Direct expenses          RO 40,000                  Purchases                    RO 140,000

Net profit                    RO 40,000                  Share Capital              RO 100,000                       Reserve and Surplus   RO 25,000                  Long term Loans  RO 50,000

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