It is given that : % Profit = Income - Expenditure x 100 Expenditure   % Profit = Income - 1 100 Expenditure   Income = % Profit + 1. Expenditure 100 From this it is clear that the ratio of income to expenditure is minimum for the year in which the % Profit has the minimum value. Since, out of given years (i.e., out of 1996, 1997, 1998, 1999 and 2000), the Company has the minimum % profit in the year 1997. So the minimum ratio of income to expenditure is in the year 1997.