Calculate Net Sales and Gross Profit from the following information:
Cost of Goods Sold Rs 1,00,000, Gross Profit 20% on Sales

Explanation

If Sales is Rs 100, Gross Profit = 20% on Sales = Rs 20
`:.` Cost will be Rs 80 (i.e., `Rs 100 - Rs 20`)
If Cost of Goods Sold `= Rs 1,00,000`, Sales `= Rs 1,00,000 xx Rs 100//Rs 80 = Rs 1,25,000`
Gross Profit = Sales - Cost of Goods Sold
`= Rs 1,25,000 - Rs 1,00,000 = Rs 25,000`