2.2 As the appointed director of Shaz Pty Ltd, you have the following financial information (12) for the year 2019 and 2020.

Details

Sales

Less :cost of goods sold Gross profit

Less : expenses

Net profit for the year

Required:

2019

R000 90,000 (50,000) 40,000 (31,000)

9,000

2020

R000 110,000 (58,000) 52,000 (41,000) 11,000

a. Calculate Shaz Pty Ltds net profit margin and gross profit margin for 2019 and 2020. (2 marks. 12 mark for each correct calculation).

b. Suppose Shaz Pty Ltds net profit margin for 2019 and 2020 is the same but the gross profit margin is different. What does this suggest to the finance manager? Use percentage analysis to explain your answer.

Round-off answers to the nearest percentage or two decimals.

(12) 2.2 As the appointed director of Shaz Pty Ltd, you have the following financial information for the year 2019 and 2020 Details Sales Less.cost of goods sold Gross profit Less : expenses Net profit for the year 2019 R'000 90,000 (50,000) 40,000 (31.000) 9.000 2020 R'000 110,000 (58,000) 52,000 (41.000) 11.000 Required: a. Calculate Shaz Pty Ltd's net profit margin and gross profit margin for 2019 and 2020. (2 marks. V mark for each correct calculation) b. Suppose Shaz Pty Ltd's net profit margin for 2019 and 2020 is the same but the gross profit margin is different. What does this suggest to the finance manager? Use percentage analysis to explain your answer. Round-off answers to the nearest percentage or two decimals