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

Enjoying This
Profit / Profit Margin = Revenue
£ 22,750 / 0.14 = £ 162,500
1 
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
info@aattrainingcompany.co.uk0
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 12.5K For AAT students
 318 NEW! Qualifications 2022
 161 General Qualifications 2022 discussion
 11 AAT Level 2 Certificate in Accounting
 56 AAT Level 3 Diploma in Accounting
 87 AAT Level 4 Diploma in Professional Accounting
 8.8K For accounting professionals
 23 coronavirus (Covid19)
 272 VAT
 92 Software
 273 Tax
 135 Bookkeeping
 7.2K General accounting discussion
 200 AAT member discussion
 3.8K For everyone
 38 AAT news and announcements
 345 Feedback for AAT
 2.8K Chat and offtopic discussion
 582 Job postings
 16 Who can benefit from AAT?
 36 Where can AAT take me?
 42 Getting started with AAT
 26 Finding an AAT training provider
 48 Distance learning and other ways to study AAT
 25 Apprenticeships
 66 AAT membership