The given table shows the revenue, cost and tax rate for a company for a period of 6 years. The revenue and cost are given in Rs. lakhs.
|
Year |
Revenue |
Cost |
Tax rate |
|
2015 |
62 |
30 |
15% |
|
2016 |
75 |
35 |
10% |
|
2017 |
84 |
38 |
15% |
|
2018 |
86 |
40 |
20% |
|
2019 |
90 |
45 |
25% |
|
2020 |
95 |
50 |
25% |
Profit = Revenue - Cost
Profit after tax for any year = Profit for that year - Tax for that year
Tax for any year = Tax rate for that year × Profit for that year
Find the total sum (in Rs. lakhs.) of profit after tax for 2015 to 2020.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 206.6
Calculation:
Profit after tax for 2015
Proflt for 2015 - (revenue - cost ) - (62 - 30) = 32
Taxfor 2015 = (tax rate × profit) = ( 15% × 32) = 4.8
Hence, proflt after tax for 2015 = (profit for 2015 - tax for 2015)
= (32 - 4.8) - 27.2
Similarly for all years;
Profit after tax for 2016
Proflt for 2016 - (75 - 35) = 40
Tax for 2016 = (10% × 40) = 4
Hence, proflt after tax for 2016 = (40 - 4) = 36
Profit after tax for 2017
Profit for 2017 = (84 - 38) - 46
Tax for 2017 - (150% × 46) = 6.9
Hence, profit after tax for 2017 = (46 - 6.9) = 39.1
Profit after tax 2018
Profit for 2018 - (86 - 40) = 46
Tax for 2018 - (20% of 46) = 9.2
Hence, profit after tax for 2018 = (46 - 9.2) = 36.8
Profit after tax for 2019
Profit for 2019 = (90 - 45) = 45
tax for 2019 = (25% of 45) = 11.25
Hence, profit after tax for 2019 = (45 - 11.25) = 33.75
Profit after tax for 2020
Profit for 2020 = (95 - 50) = 45
tax for 2020 = ( 25% of 45) = 11.25
Hence, profit after tax for 2020 = (45 - 11.25) = 33.75
Total sum of profit after tax from 2015 to 2020
⇒ ( 27.2 + 36 + 39.1 + 36.8 + 33.75 + 33.75) = 206.6
Therefore, the total sum of profit afier tax = 206.6.