The excerpts from the profit and loss account of MG Retails Limited for the last two years

Question:

The excerpts from the profit and loss account of MG Retails Limited for the last two years are given as follows:

Particulars Sales Cost of goods sold Other operating expenses Depreciation Interest Profit before tax Tax

You are required to:

1. Calculate the yearonyear growth of sales and net profit.

2. The growth of profits has exceeded the growth sales. Identify the reasons by using suitable profitability and expense ratios.

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Financial Accounting For Managers

ISBN: 9789352868339

3rd Edition

Authors: Sanjay Dhamija

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Question Posted: Dec 08, 2023 01:14 AM

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The excerpts from the profit and loss account of MG Retails Limited for the last two years

Question:

Particulars Sales Cost of goods sold Other operating expenses Depreciation Interest Profit before tax Tax Profit after tax (in Million) 2016 230 135 26 15 25 29 9 20 2017 440 280 35 20 40 65 20 45

Step by Step Answer:

1 The yearonyear growth of sales and profits can be calculated as follows The net profit of the comp...View the full answer

Financial Accounting For Managers

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