FPFM Financial Performance  AAT Sample Assessment 1  Task 7b
eddzter1978
Registered Posts: 6
Hello All,
Please could someone help me calculate the Sales Revenue to the nearest £ from the following figures:
Net Assets  £175,000
Return on net assets %  13
Profit margin %  14
Gearing %  32.75
Profit  £22,750
Sales revenue  ???
The answer is £162,500 but I cannot find out how to calculate it. I'm sure it is staring me in the face...
Thank you very much in advance.
Ed
Please could someone help me calculate the Sales Revenue to the nearest £ from the following figures:
Net Assets  £175,000
Return on net assets %  13
Profit margin %  14
Gearing %  32.75
Profit  £22,750
Sales revenue  ???
The answer is £162,500 but I cannot find out how to calculate it. I'm sure it is staring me in the face...
Thank you very much in advance.
Ed
0
Comments


Brilliant! Thanks again!0

Extension of the previous answer by crispy.
You can selfcheck. Profit margin just means how much of the revenue is converted into profit. Consequently, whatever answer you are getting for revenue multiple it by the 14% that should give you the profit, i.e. £22,750, if it doesn't you will know you have made a mistake somewhere.
Revenue(X) * margin (14%) = Profit(£22,750), x=(22,750/14%)www.aattrainingcompany.co.uk
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