Selected information from Big Rock Brewery Inc.'s income statements for three recent years follows (in thousands):

Instructions
(a) Calculate gross profit, profit from operations, and profit for each of the three years.
(b) Calculate the percentage change in net revenue and profit from operations, from 2009 to 2011.
(c) Calculate the gross profit margin for each of the three years. Comment on any trend in this percentage.
(d) Calculate the profit margin for each of the three years. Comment on any trend in this percentage.
(e) Calculate profit margin again using profit from operations instead of profit. Comment on any trend in this percentage.
(f) In Big Rock Brewery's 2011 annual report management states that they believe profit from operations is a more meaningful basis of comparison than profit. Based on your findings in (d) and (e) above, do you agree or disagree with this statement? Explain.

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2011 2010 2009 Net revenue Cost of goods sold Operating expense Non-operating income (expenses) Income tax expense (recovery) $45,183 21,385 20,455 147 957 $45,130 20,735 20,262 (12,989) (658) $46,232 20,216 19,180 304 (289)