Question

Refer the data in the table below:

$\begin{array}{cc}\text{Particulars}& 2005-06\\ \text{Reveue from Operations}& 4,00,00,000\\ \text{Other Income}& 50,00,000\\ \text{Purchase of stock in trade}& 40,00,000\\ \text{Employee Benefit Expenses}& 10,00,000\\ \text{Depreciation and Amortization}& 65,00,000\\ \text{Profit before tax}& 2,35,00,000\end{array}$

Apply common size analysis to Profit before tax.

• A. 12.50%
• B. 58.75%
• C. 20.95%
• D. None of these

Answer 1

The correct option is B

58.75%

Profit before Tax = ( 2,35,00,000/ 4,00,00,000 )* 100 = 58.75% of Revenue from Operations.