The Avon Ltd has a capital of `10,00,000; its turnover is 3 times the capital and the net profit margin on sales is 6 per cent. What is the return on investment? B Raj Ltd sells goods on cash as well...

The Avon Ltd has a capital of `10,00,000; its turnover is 3 times the capital and the net profit margin on sales is 6 per cent. What is the return on investment?

B Raj Ltd sells goods on cash as well as credit. The following particulars are extracted from their books of accounts for the current year-end.