Advanced International Accounting

Refer to the income statement presented in exhibit 2.13 for Tesco PLC.

Calculate gross profit margin (gross profit/sales), operating profit margin (operating profit/sales), and net profit margin (net earnings/sales) for this company. If a particular ratio cannot be calculated, explain why not.

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EXHIBIT 2.13 TESCO PLC Excerpt from Group Income Statement 52 weeks ended 25 February 2017 Continuing operations Note Before exceptional items fm Exceptional items (Note 4) fm Total fm Revenue 2 55,917 55,917 Cost of sales (52,899) (116) (53,015) Gross profit (loss) 3,018 (116) 2,902 Administrative expenses (1,734) (261) (1,995) Profits/(losses) arising on property-related items (4) 114 110 Operating profit (loss) 1,280 (263) 1,017