Task 7 financial performance online paper 1

clara
clara Registered, AATQB Posts: 20 New contributor ?
Please can anyone tell me how to work out scenario 3

Net assets £ £175000
Return on net assets percentage 13
Profit margin percentage 14
Gearing percentage 32.75

How do I work out profit to nearest £
And sales revenue to nearest £
Thank you

Comments

  • PeterC
    PeterC Registered, Tutor Posts: 243 Dedicated contributor ? ? ?
    Return on net assets = Profit/net assets x100 = Profit/175,000 x100 = 13
    So,
    Profit = 13 x 175,000 / 100 = 22,750

    Profit margin percentage = Profit/Sales x100 = 22,750/Sales x100 = 14
    So,
    Sales = 22,750/14 x100 = 162,500
  • Kkadijat
    Kkadijat Registered Posts: 28
    PROFIT/RETURN TO THE NEAREST £

    £175000*13% =£22750

    SALES REVENUE TO NEAREST £

    £22750/14%= £162500

    HOPE THIS HELPS
  • clara
    clara Registered, AATQB Posts: 20 New contributor ?
    Thank you both.
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