MC Question (1 Viewer)

[BillyMak]

I'm confused. I'm sure this is a very simple question, but I'm not sure how to do it. It was Q 19 of the multiple choice in 2002.

Anyways here it is:

Jack's Computer Services Pty Ltd has provided the following data based on the revenue statement for the year ended 30 June 2002.

Total Revenue*: $5000
Net Profit Ratio: 5%
Gross Profit Ratio: 60%
*Total revenue is equal to total sales.


The Gross Profit Ratio has increased from 40% in 2001 to 60% in 2002, while revenue and expenses remained the same.

What was the net profit or loss in 2001?

A $750 net loss
B $500 net loss
C $750 net profit
D $2000 net profit

 

[ToO LaZy ^*]

NP for 2002 = 250

GP for 2002 = 3000
GP for 2001 = 2000

expenses for 2002
= GP for 2002 - NP for 2002
= 3000 - 250
= 2750

we know that the 2001 GP was 2000 and we are told expenses were the same for both years

.: NP for 2001 = GP - expenses
= 2000 - 2750
= -750

.: -750 net loss
(A)