6.32. Assessing comparative statement of profit or loss

The statement of profit or loss for JB Hi-Fi Ltd for the financial year ended 30 June 2018 was provided in figure 6.2. It reports that JB Hi-Fi Ltd has increased its gross profit from $1230.5 million in 2017 to $1470.2 million in 2018. Its profit for 2018 is $233.2 million compared to $172.4 million in 2017. The financial performance allows a manager to assess previous decisions and inform future decisions. Hypothesise as to the reasons or business decisions contributing to the increase in the gross profit in 2018. Assess why the profit in 2018 was higher than in 2017.