Gamma Holding NV, a Dutch textile company, presented the following calculation of operating profit in its 2009 consolidated income statement:
‚¬ X 1,000,0002009
Net turnover658.5
Change in finished products and work in progress (14.3)
Total operating income644.2
Costs of raw materials and consumables(212.9)
Contracted work and other external costs(42.7)
Added value388.6
Personnel costs(236.9)
Depreciation of property, plant, and equipment (29.4)
Impairment of property, plant, and equipment (7.4)
Amortization of intangible assets (4.2)
Impairment of intangible assets(18.5)
Other operating expenses(100.2)
Other income and expense0.2
Total other operating expenses (396.4)
Operating result(7.8)
Required:
a. Determine whether finished products and work in progress inventory in total increased or decreased during the year.
b. Identify the additional information that would be needed to calculate cost of goods sold for the company in 2009.
c. Given the following assumptions with respect to the percentage of operating expenses related to manufacturing activities and nonmanufacturing activities, provide an estimate of cost of goods sold:

d. Give the estimated cost of goods sold from part (c), determine the company€™s gross profit margin for 2009.

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96 Manufacturing % Nonmanufacturing 9090 Costs ofraw materials and consumables Contracted work and other extemal costs Personnel costs Depreciation andimpaiment ofproperty, plant and equipment Amortization and impairment ofintangible assets Other operating expenses 10% 100 50 50 75 25 80 20 10 90