Use the following information to answer the given question:
(begin{array}{c|c} & N \ hline text{Stock at 1st Jan. 1901} & 6,500 \ text{Stock at 31st Dec. 1901} & 5,500 \ text{Creditors at 1st Jan. 1901} & 4,000 \ text{Creditors at 31st December 1901} & 5,000 \ text{cash paid for goods during the year} & 20,000 \ text{Gross profit} & text{25% on cost} \ text{Administrative and selling expenses} & 2,750
end{array})
Calculate the percentage of net profit on sales
(begin{array}{c|c} & N \ hline text{Stock at 1st Jan. 1901} & 6,500 \ text{Stock at 31st Dec. 1901} & 5,500 \ text{Creditors at 1st Jan. 1901} & 4,000 \ text{Creditors at 31st December 1901} & 5,000 \ text{cash paid for goods during the year} & 20,000 \ text{Gross profit} & text{25% on cost} \ text{Administrative and selling expenses} & 2,750
end{array})
Calculate the percentage of net profit on sales
-
A.
25% -
B.
22% -
C.
21% -
D.
20% -
E.
10%