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Balance Sheet

by goyalsau » Fri Oct 29, 2010 1:51 am
The balance sheet for the financial year of a company shows a sale of Rs 15200. The primary cost is 25% of sales and leading costs account for 20% of the gross profit. The gross profit was determined by deducting the primary cost plus the cost of miscellaneous expenses of Rs 1200. The managing director's salary of Rs 500 per annum plus 2% of annual sales is a minimum cost. What is the percentage profit on a capital investment of Rs 20000?

28%
30%
38%
40%
45%
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by pesfunk » Fri Oct 29, 2010 5:28 pm
Sale 15200
Primary cost = 3800
GP = 15200 - 3800 - 1200 = 10200
Leading Cost = 2040

Profit after leading cost = 8160

MD Salary = 500 + 300 = 800

FInal profit = 7360

7360 of 20000 = 38%
goyalsau wrote:The balance sheet for the financial year of a company shows a sale of Rs 15200. The primary cost is 25% of sales and leading costs account for 20% of the gross profit. The gross profit was determined by deducting the primary cost plus the cost of miscellaneous expenses of Rs 1200. The managing director's salary of Rs 500 per annum plus 2% of annual sales is a minimum cost. What is the percentage profit on a capital investment of Rs 20000?

28%
30%
38%
40%
45%
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by diebeatsthegmat » Fri Oct 29, 2010 5:39 pm
pesfunk wrote:Sale 15200
Primary cost = 3800
GP = 15200 - 3800 - 1200 = 10200
Leading Cost = 2040

Profit after leading cost = 8160

MD Salary = 500 + 300 = 800

FInal profit = 7360

7360 of 20000 = 38%
goyalsau wrote:The balance sheet for the financial year of a company shows a sale of Rs 15200. The primary cost is 25% of sales and leading costs account for 20% of the gross profit. The gross profit was determined by deducting the primary cost plus the cost of miscellaneous expenses of Rs 1200. The managing director's salary of Rs 500 per annum plus 2% of annual sales is a minimum cost. What is the percentage profit on a capital investment of Rs 20000?

28%
30%
38%
40%
45%
300 is from where?
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by pesfunk » Fri Oct 29, 2010 5:48 pm
2% of annual sales = 300 ( Actually 308 but took it as 300 for easier calculation )

Whatz the OA guys ?
diebeatsthegmat wrote:
pesfunk wrote:Sale 15200
Primary cost = 3800
GP = 15200 - 3800 - 1200 = 10200
Leading Cost = 2040

Profit after leading cost = 8160

MD Salary = 500 + 300 = 800

FInal profit = 7360

7360 of 20000 = 38%
goyalsau wrote:The balance sheet for the financial year of a company shows a sale of Rs 15200. The primary cost is 25% of sales and leading costs account for 20% of the gross profit. The gross profit was determined by deducting the primary cost plus the cost of miscellaneous expenses of Rs 1200. The managing director's salary of Rs 500 per annum plus 2% of annual sales is a minimum cost. What is the percentage profit on a capital investment of Rs 20000?

28%
30%
38%
40%
45%
300 is from where?
Top
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by goyalsau » Fri Oct 29, 2010 8:09 pm
pesfunk wrote:Sale 15200
Primary cost = 3800
GP = 15200 - 3800 - 1200 = 10200
Leading Cost = 2040

Profit after leading cost = 8160

MD Salary = 500 + 300 = 800

FInal profit = 7360

7360 of 20000 = 38% { this is 36.80%}
I don't the the OA
Buddy i was getting the same answer but its not exact 38% It is 36.78 % ( that why i was confused with the answer,)
IN these kind of situations, Its very annoying because you do everything right, and then in last the option is wrong.

This question is from CAT 2010 Sample questions from www.CATIIM.in , ( I always like to search questions from here and there )
Just imagine What can one after on that.
Saurabh Goyal
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