Calculation of profits (gross and net) - Jamb Commerce Past Questions and Answers

Question 6:

• JAMB 1994

A company earned a total revenue of N108 million with a total cost of N91 million in 1991. If it paid 45% tax on its gross profit for that year, determine its net profit.

A. N24.65 million
B. N17.00million
C. N9. 35 million
D. N7.65million

Question 7:

• JAMB 1995

Given:
Opening stock 40 000
Purchases 115 000
Closing stock 60 000
Sales 250 000
What is the cost of goods sold?

A. N 155 000
B. N 95 000
C. N 50 000
D. N 30 000

Question 8:

• JAMB 1998

Use the information above to answer this question
What is the ratio?

A. 2.95:1
B. 4.25:1
C. 4.75:1
D. 5,55:1

Question 9:

• JAMB 1998

If a firm's turnover is N15,000 and the cost of goods sold is N 10,000 What is the percentage of gross profit on sales?

A. 23.3%
B. 33.3%
C. 50.0%
D. 66.6%

Question 10:

• JAMB 1999

An abridged version of a company's income statement for 11993 contains the following information:
N
Turnover 286.5
cost of goods sold 147.5
overhead and other expenses 85.5
Taxes due for the year 26.9
What was the company's profit before tax for 1993?

A. 26.9 million
B. 53.5 million
C. 139.2 million
D. 286.5 million