Gross Profit Ratio for a firm remains same but the Net Profit Ratio is decreasing. The reason for such behavior could be:

Related MCQs

• The gross profit margin is unchanged, but the net profit margin declined over the same period. This could have happened if
• A firm has Capital of 10,00,000; Sales of 5,00,000; Gross Profit of . 2,00,000 and Expenses of . 1,00,000. What is the Net Profit Ratio?
• A firm has a capital of Rs. 10 lakhs, sales of Rs. 5 lakhs, gross profit of Rs. 2 lakhs and expenses of Rs. 1 lakh. The Net Profit Ratio is:
• You're given the gross profit margin, which is 20%, and the gross profit (GP), which is Rs. 54000. Find the sales amount.
• In last year the current ratio was 3:1 and quick ratio was 2:1.Presently current ratio is 3:1 but quick ratio is 1:1.This indicates comparably
• A firm is said to be financially unlevered firm if the firm has ……….
• Net Profit Ratio Signifies:
• In Net Profit Ratio, the denominator is:
• ___________ is the ratio of the number of shares of the aquiring firm and the selling firm's share
• The net cash flows of the project and their present values are as follows Year 1 2 3 4 Net cash flow (Rs) 5100 5100 5100 7100 PVIF @12% 0.893 0.797 0.712 0.636 Present Value (Rs) 4554 4065 3631 4516 The initial investment in the project is Rs12500, What is the NPV of the project?