Advanced International Accounting

Refer to the income statement presented in exhibit 2.10 for Sdzucker AG.

Required: a) 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.

EXHIBIT 2.10 SUDZUCKER AG Statement of Comprehensive Income 1 March 2016 to 28 February 2017 E million Notes 2016/17 2015/16 Revenues (6) 6,476.0 6,387.0 Change in work in progress and finished goods inventories and internal costs capitalized (7) 141.1 -175.3 Other operating income (8) 98.7 122.5 Cost of materials (9) -4,323.2 -4,091.8 Personnel expenses (10) -841.7 -831.5 Depreciation (11) -285.9 -283.9 Other operating expenses (12) -859.1 -905.1Result from companies consolidated at equity (13) 35.0 55.0 Result from operations (14) 440.9 276.9 Financial income (15) 50.7 59.6 Financial expense (15) -84.6 - 109.8 Earnings before income taxes 407.0 226.7 Taxes on income (16) -94.9 -45.8 Net earnings (18) 312.1 180.9 of which attributable to Sudzucker AG shareholders 213.6 108.9 of which attributable to hybrid capital 13.4 18.4 of which attributable to other noncontrolling interests 85.1 53.6 Earnings per share (() (18) 1.05 0.53