ABC Ltd. Is selling its products on credit basis and its customers are associated with 5% credit risk. The annual turnover is expected at ` 5,00,000 if credit is extended with cost of sales at 75% of sale value. The cost of capital of the company is 15%. Calculate the net profit of the company. 

Answer rating: 100% (QA)

Total Sales Turnover 500000 Cost of Sales 75 of Total Sales 075 500000 375000 ... View the full answer