Task 7 financial performance online paper 1

clara

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

PeterC

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

PROFIT/RETURN TO THE NEAREST £

£175000*13% =£22750

SALES REVENUE TO NEAREST £

£22750/14%= £162500

HOPE THIS HELPS

clara

Thank you both.