Quant Quiz- Case Study

Directions (1-5): Read the given information carefully to answer these questions:

We compare the balance sheet of three companies A, B and C in the year 2005. .We found the total profit of all three companies to be Rs 60 crores and the profit of Company A is the average profit of all these three companies. Profit of Company B is 20% less than that of Company A and profit of Company C is 20% more than that of Company A. Profit of Company B is 20% of the income of Company C. Profit of Company B is also equal to 40% of the expenses of Company A, which is equal to the income of Company B. Now answer the following questions.


1. What is the average expenditure of all the three companies?
(1) Rs 24 crores
(2) Rs 36 crores
(3) Rs 40 crores
(4) Rs 44 crores
(5) None of these

2. Expenditure of Company B is how much per cent of the expenditure of Company A?
(1) 50%
(2) 60%
(3) 64%
(4) 72%
(5) 80%

3. Expenditure of Company C is how much per cent more than the expenditure of Company A?
(1) 24%
(2) 25%
(3) 30%
(4) 36%
(5) 40%

4. What is the ratio of the average income to the average profit of all the three companies?
(1) 3 : 1
(2) 3 : 2
(3) 4 : 1
(4) 4 : 3
(5) 2 : 1

5. If the percentage rise in profit of Company A is 20% per annum in future years, what will be the profit of Company A in the year 2007?
(1) Rs 28 crores
(2) Rs 28.8 crores
(3) Rs 32 crores
(4) Rs 32.8 crores
(5) Rs 48 crores

Answers
Solutions (1-5)
Total Profit = 60 Crore

According to Qs:
Profit of Company B is 20% of the Income of Company C
Let Income of Company C is P
So P x 20% = 16
P = (16 * 100)/100 = 80 Cr.

Income of Company C = 80 Cr

Profit of Company B is also equal to 40% of the Expenses of Company A

Let Expense of Company A is P

So P x 40% = 16
P = (16 * 100)/40 = 40 Cr
Expense of Company A = 40 Cr

1. (3)

2. (2) Req % = 24/40 * 100 = 60%

3. (5) Req % = (56 - 40)/56 * 100 = 40%

4. (1) Total Average Income of the company = 180/3= 60 crore
Total Average Profit of the company = 60/3 = 20 Crore

Req Ratio 60 : 20 = 3 : 1

5. (2) In 2006 Profit of company A = 120/100 * 20 = 24 Crore

In 2007 Profit of company A = 120/100 * 24 = 28.8 Crore