No Bloody Proftiability Ratio In Damn Paper (1 Viewer)

[polo sport]

wtf......where tf is the freaking COGS or GP????
u have shit reveune, and expensese.......cant freaking work bloody nefink out.
stupid shits.
i did reveunue- expensees = net profit, and then i put that over revenue.......as in NPR

i think i went worse in the exam then at school, which is so gay cuz i am first at school......my q28 wsa shit...my report ok....i suppose......my m/c alrite....and short answer ok......
dunno y im not happy...like i answered everything...but just feel shitty about it....

 

[karnevil]

erm...

you could have used Revenue - Expenses = Net Profit

and then used the accounting ratio that we learnt in year11, Assets = Liabilities + Owners Equity

and then done:
Net Profit / Owners Equity = Return on owners equity.... a profitability ratio...

 

[jcsmokie]

but revenue - expenses does not equal net profit?!?!

 

[sneaky pete]

sure it does..

 

[chris42]

But if you did that, then you just may as well done net profit/ sales right ?

 

[jcsmokie]

no it doesnt...GP = revenue - COGS...so how can revenue - expenses = net profit? u need to get gross profit first...?? and yeah..what chris42 said..evenif u revenue - expenses did equal net profit..u might as well have calculated net profit ratio...?!

 

[chris42]

So what was the answer then.. does anyone know ?

 

[mal]

It is return on owners qeuity ratio. Revenue is not sales. Revenue is sales - COGS. Learn some theory. Revenue is what the business earns and it can then invest it back into the business or it can use it as a profit once expenses are taken out. In this question you do not know sales. Out of the three ratios for profitability only one dose not have sales.
You have: NP/Sales
GP/Sales
NP/OE

Therefore by simple process of elimination it has to be NP/OE.

The only thing I don't get was why this question was only 1 mark
and the question following it (much easier) was 2 marks?

 

[sneaky pete]

no it doesnt...GP = revenue - COGS
sure..

so how can revenue - expenses = net profit?
why can't it?

u need to get gross profit first...??
sure..

and yeah..what chris42 said..evenif u revenue - expenses did equal net profit..u might as well have calculated net profit ratio...?!
for that question i did calculate net profit ratio..


http://www.zeromillion.com/young/financial-vocabulary-glossary.html

Financial Vocabulary Glossary
Revenue what you earn
Expenses what you spend
Net Profit Total revenue minus total expenses
Net Income same as net profit
COGS the cost of goods sold. What you pay for what you sell.
Gross Income Total revenue minus COGS
Gross Margin same as gross income

I base my knowledge of that, if its wrong then so be it.

 

[jcsmokie]

okkkkkk...sneaky pete...gee...well i'm not sure if ur being sarcastic or not..with ur "sure"s etc...but i was only wondering how could revenue - expenses = net profit, because i was taught that net proft = gross profit - expenses, and gross profit does not equal revenue...

well i calculated net profit too, usign revenue as gross profit, but then...seems to be wrong...so oh well.

 

[sneaky pete]

Originally posted by jcsmokie
okkkkkk...sneaky pete...gee...well i'm not sure if ur being sarcastic or not..with ur "sure"s etc...but i was only wondering how could revenue - expenses = net profit, because i was taught that net proft = gross profit - expenses, and gross profit does not equal revenue...

Originally posted by http://www.zeromillion.com/young/financial-vocabulary-glossary.html
Net Profit Total revenue minus total expenses.
Gross Income Total revenue minus COGS

I wasn't being sarcastic.
I used the above site as a study help, thats where I got that rev - exp = np from, and thats my justification for using that formula during the exam. :| whether it gets the 1 mark or not is another question.

 

[*hopeful*]

wat a stupid qstn dat wuz
datz y i reckon it wuz worth only 1 mark
i did net profit, analysed d pathetic qstn, crossd it out n sumhow figured out GP.

 

[Golani]

you could've used:

GPR = Revenue - Expenses = Net Proft. Net Profit / Revenue = GPR

ROE= Total Assets - Total Liabilities = Owner's Equity. Net Proft / Owner's Equity = ROE

I guess.....nothing better you could do...