Gross profit ratio of a company was 25%, its credit revenue from operations was Rs. 20,00,000 and its cash revenue from operations was 20% of the total revenue from operations. If the indirect expenses of the company was Rs. 50,000. Calculate its net profit.

Let the total revenue from operations (Total Sales) be $X$.Given that cash revenue from operations is $20\%$ of the total revenue, the credit revenue from operations must be:
$$100\%-20\%=80\%\text{ of }X$$
We are given that credit revenue from operations is $\text{Rs. }20,00,000$:
$$0.80\times X=20,00,000$$
$$X=\frac{20,00,000}{0.80}=25,00,000$$
Thus, Total Revenue from Operations = $\text{Rs. }25,00,000$.Now, the Gross Profit ratio is $25\%$ of the total revenue from operations:
$$\text{Gross Profit}=25\%\times 25,00,000=6,25,000$$
Net Profit is calculated by subtracting indirect expenses from Gross Profit:
$$\text{Net Profit}=\text{Gross Profit}-\text{Indirect Expenses}$$
$$\text{Net Profit}=6,25,000-50,000=5,75,000$$