FPFM Financial Performance - AAT Sample Assessment 1 - Task 7b

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
Comments
Profit / Profit Margin = Revenue
£ 22,750 / 0.14 = £ 162,500
You can self-check. 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%)
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