Fin. MC Q? (1 Viewer)

[nicksta_40]

Britney's Beauty Services Pty Ltd has provided the following data based on the revenue statement for the yr ended 30 June 2003

Total Reveune $10 000
Net Profit Ratio 7%
Gross Profit Ratio 45%

*Total revenue is equal to Total Sales


The Gross Profit Ratio has increased from 25% in 2002 to 45% in 2003, while revenue and expenses remained the same. What was the net profit or loss in 2002?

A) $1300 net profit
B) $2500 nt profit
C) $1300 net loss
D) None of the above


now how do u do this question???

 

[nik_noodle]

I get c)

Because:
In 2003:
GP/10000= 45/100
GP= 4500

NP/10000=7/100
NP= 700

4500-700= EXPENSES
EXPENSES= 3800

In 2002
GP/10000= 25/100
GP= 2500

NP= GP-EXPENSES
=2500-0800
=-1300

Therefore there is a $1300 Net Loss...am i right?

 

[nicksta_40]

yup, thnx a lot buddy, ur better than both my maths and biz teachers

 

[nik_noodle]

actually...i totally hate the subject and was gonna drop it at the end of yr11...im not bad at it, i just find it the most boring thing on earth...well maybe not..that goes to study....
hehe.
glad to have helped
Love Nikki