Introduction to Data Interpretation
Direction: The following graph gives Sales, Expense and Capital of a company for a period of five years –1994 to 1998. Read the graph and answer questions.
- In which year was the ratio of Profit to capital the highest?
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As we know the formula,
Profit = Sales - Expenses
Solve option one by one.
Correct Option: B
As we know the formula,
Profit = Sales - Expenses
Solve option one by one.
Option (A) in year 1998
Profit in year 1998 = Sales in 1998 - Expenses in 1998
Profit in year 1998 = 800 - 700 = 100
Capital in year 1998 = 200 (As per given graph)
Ratio of profit to capital in year = 100 / 200 = 0.5
Similarly Option (B) in year 1995
Profit in year 1995 = Sales in 1995 - Expenses in 1995
Profit in year 1995 = 500 - 400 = 100
Capital in year 1995 = 100 (As per given graph)
Ratio of profit to capital in year = 100 / 100 = 1
Similarly Option (C) in year 1996
Loss in year 1996 = Sales in 1996 - Expenses in 1996
Loss in year 1996 = 500 - 400 = 100
Profit in year 1996 = 500 - 400 = - 100
Capital in year 1996 = 100 (As per given graph)
Ratio of profit to capital in year = - 100 / 100 = -1
Similarly Option (D) in year 1997
Loss in year 1997 = Sales in 1997 - Expenses in 1997
Loss in year 1997 = 600 - 400 = 200
Profit in year 1997 = 600 - 400 = - 200
Capital in year 1997 = 200 (As per given graph)
Ratio of profit to capital in year 1997 = Profit / Capital
Ratio of profit to capital in year 1997 = - 200 / 200 = -1
As we can see the year 1995 has the highest ratio for Profit to capital.
- In which year was the ratio of sales to capital the lowest?
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View Hint View Answer Discuss in Forum
Ratio of sales to capital = Sales in a year / Capital in a year
Solve the question with the help of option one by one.Correct Option: B
Ratio of sales to capital = Sales in a year / Capital in a year
Solve the question with the help of option one by one.
Option(A)
Ratio of sales to capital in 1998 = Sales in 1998 / Capital in 1998
Ratio of sales to capital in 1998 = 800 / 200 = 4
Similarly Option(B)
Ratio of sales to capital in 1997 = Sales in 1997 / Capital in 1997
Ratio of sales to capital in 1997 = 400 / 200 = 2
Similarly Option(C)
Ratio of sales to capital in 1996 = Sales in 1996 / Capital in 1996
Ratio of sales to capital in 1996 = 300 / 100 = 3
Similarly Option(D)
Ratio of sales to capital in 1995 = Sales in 1995 / Capital in 1995
Ratio of sales to capital in 1995 = 500 / 100 = 5
As we see in all option , The ratio value is lowest for the year 1997. So answer will be 1997.
- What has been the simple average growth rate per annum of expense between 1994 and 1995?
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% growth of expense from 1994 to 1995 = expense from 1995 - expense from 1994 × 100 expense from 1994 Correct Option: B
% growth of expense from 1994 to 1995 = expense from 1995 - expense from 1994 × 100 expense from 1994
Put the value from given graph,= 400 - 300 × 100 = 33 1 % 300 3
- What was the average per annual increase in sales (in $ Billion) from 1994 to 1998?
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Average per annual increase in sales = Add the increased sales and subtract the decreased sales for 1994 to 1998 Total number of years
Correct Option: D
Average per annual increase in sales = Add the increased sales and subtract the decreased sales for 1994 to 1998 Total number of years Average per annual increase in sales = (Increased sales between 94 - 95 ) - (decreased sales between 95 - 96 ) + (Increased sales between 96 - 97 ) + (Increased sales between 97 - 98 ) 4 Average per annual increase in sales = ( 500 - 400 ) - ( 500 - 300) + ( 400 - 300 ) + ( 800 - 400 ) 4 Average per annual increase in sales = 100 - 200 + 100 + 400 = $ 100 Billion 4
- In which year was the sales-to-expense ratio the lowest?
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View Hint View Answer Discuss in Forum
The sales-to-expense ratio = Sales in the given year Expense in the given year
Calculate the ratio from given option one by one.
In 1995The sales-to-expense ratio in year 1995 = Sales in the year 1995 Expense in the year 1995 Correct Option: C
The sales-to-expense ratio = Sales in the given year Expense in the given year
Calculate the ratio from given option one by one.
In 1995The sales-to-expense ratio = Sales in the year 1995 Expense in the year 1995
Put the value from given graph,The sales-to-expense ratio = 500 400 The sales-to-expense ratio = 5 4
Similarly in 1996The sales-to-expense ratio 1996 = 300 400 The sales-to-expense ratio 1996 = 3 4
Similarly in 1997The sales-to-expense ratio 1997 = 400 600 The sales-to-expense ratio 1997 = 2 3
Similarly in 1998The sales-to-expense ratio 1998 = 800 700 The sales-to-expense ratio 1998 = 8 7
As we can see that the least ration is in year 1997.
